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Insane: Liberals Contemplate $1 Trillion Platinum Coin to "Solve" Debt Limit Issue

Joseph64 Wrote: Dec 09, 2012 3:10 PM
Wouldn't create any extra inflation? Is this guy kidding? That would be another $2 trillion spent into the economy as surely as if they printed paper dollars. You bet your life it would be inflationary.
Dyoung Wrote: Dec 10, 2012 12:43 PM
No, untrue. It is $2 trillion that has already been spent into the economy. The amount has already affected inflation. This is a repaying of debts not spending new money.
Joseph64 Wrote: Dec 10, 2012 2:00 PM
No, you are wrong. This is new money that did not exist before. Every time the government creates new money, it does not matter what it is spent on, it is still inflationary. Look at it this way, the government borrowed $2 trillion dollars years ago so that original $2 trillion is still in the economy, now they print another $2 trillion to repay the loan. It is still inflationary because the original $2 trillion still exists and now you're printing up another $2 trillion to repay the loan. That's $4 trillion dollars adding to inflation.
Mike4166 Wrote: Dec 11, 2012 1:52 PM
What is backing the coins, Dyoung? Seriously? Let me guess, you're a sociology major who took nothing resembling hard science, mathematics or statistics. No matter what, you're adding an additional amount of currency in the market, with nothing to back it. Can you say; Zimbabwe? C'mon now, I know you can.

Welcome to Zimbabwe.  This is not a parody -- it is an actual report from the Washington Post:

Some economists and legal scholars have suggested that the “platinum coin option” is one way to defuse a crisis if Congress can’t or won’t lift the debt ceiling soon. At least in theory. The U.S. government is, after all, facing a real problem. The Treasury Department will hit its $16.4 trillion borrowing limit by next February at the latest. Unless Congress reaches an agreement to raise that borrowing limit, the government will no longer be able...

Related Tags: Debt Limit Inflation