• Posts
  • RSS
  • ◂◂RSS
  • Contact

  • Trillion Dollar Platinum Coin

    December 9th, 2012
    econ, money, politics
    Congress passes laws that have the effect of bringing in money and sending it out. Where there's a shortfall the government borrows money, going deeper in debt. Except there's a maximum amount of money congress allows the government to borrow, the "debt ceiling", and if the government reaches that point we get a crisis.

    Last time this came up people pointed out that the president could just ask the mint to make some trillion dollar platinum coins. Apparently borrowing money requires congressional approval, but minting it does not. [1] Normally printing money is a bad way to finance government operations because it causes inflation: it's basically forcing the people who already have money to give the government a nominally zero-interest loan. Interest rates are practically zero, however, so is there any downside to forcing the government to fund itself through seigniorage instead of bonds?


    [1] The law has huge numbers of restrictions on most coins, including their values and how many can be minted, but the law for platinum coins is wide open:

    The Secretary may mint and issue platinum bullion coins and proof platinum coins in accordance with such specifications, designs, varieties, quantities, denominations, and inscriptions as the Secretary, in the Secretary's discretion, may prescribe from time to time.
    This is a strange loophole; why is it there? I can't find when it was added. Is there some sort of blame command for the law where you can look up when a particular bit of text was added, and from there look into why it might have been put there?

    Comment via: google plus, facebook

    Recent posts on blogs I like:

    Moral aesthetics

    “Doing good” differs by subculture The post Moral aesthetics appeared first on Otherwise.

    via Otherwise September 29, 2022

    Futurist prediction methods and accuracy

    I've been reading a lot of predictions from people who are looking to understand what problems humanity will face 10-50 years out (and sometimes longer) in order to work in areas that will be instrumental for the future and wondering how accurate thes…

    via Posts on September 12, 2022

    On the Beach

    I really like going in the water and this beach is a great place for building sand castles and boogie boarding. I also like trying to float on top of big waves. I'm not very good at it. I only float on the flat waves.

    via Anna Wise's Blog Posts July 12, 2022

    more     (via openring)


  • Posts
  • RSS
  • ◂◂RSS
  • Contact