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

nodeamass Wrote: Dec 08, 2012 4:35 PM
Banks get to create money through fractional banking so all clownies must demand an end to fractional banking, a scam where a bank loans out many times what its reserves are.
Quintus_T_Cicero Wrote: Dec 08, 2012 4:39 PM
nobrainmass: You have no clue what fractional reserve banking is. It in no way creates a money.

BTW, what is the definition of money?
psydoc Wrote: Dec 08, 2012 4:44 PM
It does put more currency into the economy, Quitus.

nodeamass, fraction reserve banking, by itself, is not "The" problem. The required reserves, if too low, can become a problem when there are too many defaults.
nodeamass Wrote: Dec 08, 2012 4:45 PM
A thing used to allow the exchange of goods between different parties .
nodeamass Wrote: Dec 08, 2012 4:47 PM
If economic activity increases by 10%, there can be a matching increase in currency with no inflationary effects.
byeBarry Wrote: Dec 08, 2012 4:37 PM
Fiat money, huum, what does that create?

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