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Tidybuoy 10-05-2021 12:39 PM

Can Anyone Explain the 1 Trillion Dollar Coin
 
I am baffled. The congress is proposing that the mint create a 1 Trillion Dollar Coin which will then be transferred to the Federal Reserve and will eliminate the need to raise the debt limit.

Does this make sense to anybody??

It seems like I hear on a daily basis that "millionaires and billionaires" are not paying their fair share and "cheating" on their taxes, yet when the government spending gets out of control, they can simply stamp out a $10,000 coin and label it 1 Trillion Dollars and their problem is instantly solved.

I would love to hear opinions on this subject.

stevej37 10-05-2021 01:07 PM

Tabs is the man for this question.:)

He will arrive shortly.

id10t 10-05-2021 01:18 PM

There is a Pratchett quote for darn near anything..... strongly recommend reading Going Postal for some background on Moist, and then reading Making Money.

Quote:

'Somehow I was expecting something… bigger,' said Moist, looking through the steel bars into the little room that held the gold. The metal, in open bags and boxes, gleamed dully in the torchlight.

'That is almost ten tons of gold,' said Bent reproachfully. 'It does not have to look big.'

'But all the ingots and bags put together aren't much bigger than the desks out there!'

'It is very heavy, Mr Lipwig. It is the one true metal, pure and unsullied,' said Bent. His left eye twitched. 'It is the metal that never fell from grace.'

'Really?' said Moist, checking that the door out of there was still open.

'And it is also the only basis of a sound financial system,' Mr Bent went on, while the torchlight reflected off the bullion and gilded his face. 'There is Value! There is Worth! Without the anchor of gold, all would be chaos.'

'Why?'

'Who would set the value of the dollar?'

'Our dollars are not pure gold, though, are they?'

'Aha, yes. Gold-coloured, Mr Lipwig,' said Bent. 'Less gold than seawater, gold-ish. We adulterated our own currency! Infamy! There can be no greater crime!' His eye twitched again.

'Er… murder?' Moist ventured.

Yep, the door was still open. Mr Bent waved a hand. 'Murder only happens once,' he said, 'but when the trust in gold breaks down, chaos rules. But it had to be done. The abominable coins are, admittedly, only gold-ish, but they are at least a solid token of the true gold in the reserves. In their wretchedness, they nevertheless acknowledge the primacy of gold and our independence from the machinations of government! We ourselves have more gold than any other bank in the city, and only I have a key to that door! And the chairman has one too, of course,' he added, very much as a grudging and unwelcome afterthought.

'I read somewhere that the coin represents a promise to hand over a dollar's worth of gold,' said Moist helpfully.

Mr Bent steepled his hands in front of his face and turned his eyes upwards, as though praying. 'In theory, yes,' he said after a few moments. 'I would prefer to say that it is a tacit understanding that we will honour our promise to exchange it for a dollar's worth of gold provided we are not, in point of fact, asked to.'

'So… it's not really a promise?'

'It certainly is, sir, in financial circles. It is, you see, about trust.'

'You mean, trust us, we've got a big expensive building?'

'You jest, Mr Lipwig, but there may be a grain of truth there.' Bent sighed. 'I can see you have a lot to learn. At least you'll have me to teach you. And now, I think, you would like to see the Mint. People always like to see the Mint. It's twenty-seven minutes and thirty-six seconds past one, so they should have finished their lunch hour.'

cockerpunk 10-05-2021 01:19 PM

money is indeed a social construct.

Aurel 10-05-2021 01:19 PM

Here is my take on it:

Looks like the feds have found a new way to raise the debt ceiling without generating inflation, by minting coins instead of printing bills. I guess because the coins are made of platinum they have some intrinsic value. Anyways, this really feels like scraping some spare change from drawers and pockets to pay the monthly bills...

https://www.axios.com/trillion-dollar-platinum-coin-mint-janet-yellen-223e7722-d7ba-47c9-b5f6-49a841d181de.html

Norm K 10-05-2021 01:20 PM

Why not just go all in and mint a couple of dozen of these? We can hand them out to our creditors, tell them to simply subtract our current balance and to hold the remainder as credit against any future debts we might incur with them. Oh, and we can tell them not to worry: we have adequate supplies of platinum and can mint more as may be needed.

Financial problems solved.

_

Aurel 10-05-2021 01:38 PM

Quote:

Originally Posted by Norm K (Post 11476691)
Why not just go all in and mint a couple of dozen of these? We can hand them out to our creditors, tell them to simply subtract our current balance and to hold the remainder as credit against any future debts we might incur with them. Oh, and we can tell them not to worry: we have adequate supplies of platinum and can mint more as may be needed.

Financial problems solved.

_

Platinum ain’t cheap. Right now, they plan on minting with what they have on hand.

But come to think about it, platinum is used for catalytic converters, and if the cars move to EV, there will be more available…

Arizona_928 10-05-2021 01:49 PM

Palladium is more valuable....



Wanna see a crash? Bc this is how it happens.

cabmandone 10-05-2021 01:53 PM

Make 28 of them and pay off the debt! It's brilliant!

Aurel 10-05-2021 02:03 PM

Quote:

Originally Posted by cabmando (Post 11476718)
Make 28 of them and pay off the debt! It's brilliant!

Sure, just have to print the dollars to buy the platinum :cool:

cabmandone 10-05-2021 02:05 PM

Platinum shmatinum make em outta cold steel with a platinum coating

cockerpunk 10-05-2021 02:20 PM

i mean the reason why this makes no sense, is that it calls into question the assumed social construct of money as a representation of utility.

except that money doesn't represent utility, or labor, or even value. we agree on some level it does, but it literally doesn't.

908/930 10-05-2021 02:20 PM

No I can not explain, but I thought they already made some out of transparent aluminium, possibly lost those ones, or was it unobtainium?

flatbutt 10-05-2021 02:22 PM

The coin would be held as collateral for the debt? So why not sell several of these to offset the debt? Jeez what with all of the smoke , mirrors and BS it's no wonder we can't see the truth.

KFC911 10-05-2021 02:37 PM

If ya wanna play poker with Tab$ ... ya needs a few coinz :D

HobieMarty 10-05-2021 03:27 PM

Quote:

Originally Posted by cabmando (Post 11476730)
Platinum shmatinum make em outta cold steel with a platinum coating

Kinda like how manufacturers make wheels that have "chrome cladding" which is a plastic chrome cover "bonded", (glued), to a steel or aluminum wheel. This fakery is going to go south eventually.

Sent from my SM-N950U using Tapatalk

rfuerst911sc 10-05-2021 04:00 PM

It reminds me of a street magician , which shell is the ball under ? Hey politicians on both sides you ALL have your hands in this mess . Start paying it down and balance the books !!!!!

Bill Douglas 10-05-2021 04:09 PM

It's just further watering down the value of a USD

Instead of printing money, I guess it's stamping (in a coin press) money.

LEAKYSEALS951 10-05-2021 04:10 PM

http://forums.pelicanparts.com/uploa...1633479012.jpg

Norm K 10-05-2021 04:26 PM

Quote:

Originally Posted by stevej37 (Post 11476682)
Tabs is the man for this question.:)

He will arrive shortly.

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