In response to:

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

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.

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