Trillion Dollar Coin is Dead! Long Live Trillion Dollar Coin!
January 9th, 2013 - 5:20 am
Don’t like the platinum coin option? Here’s a functionally equivalent alternative: have the Treasury sell pieces of paper labeled “moral obligation coupons”, which declare the intention of the government to redeem these coupons at face value in one year.
It should be clearly stated on the coupons that the government has no, repeat no, legal obligation to pay anything at all; you see, they’re not debt, and therefore don’t count against the debt limit. But that shouldn’t keep them from having substantial market value.
When your only tool is a hammer, everything looks like scads of make-beleive dollars.
Forget the currency — the thing truly debased is Paul Krugman.
Oh, I see! The government should simply declare that it has more money to spend, but that none of it is debt. And by the sheer force of this decree, it will be so!
Has he consulted a psychiatrist yet? I ask this because only an idiot or somebody with severe mental health issues would think anybody would give money for a “moral obligation coupon” for which the buyer has no legal recourse for redeeming if the government decides not to honor, and we know that Mr. Krugman can’t be an idiot because the Nobel Prize committee said so, (and Enron would never have hired an idiot to be an advisor.)
ha, I think I’ll wait to see how many of those Krugman buys before I blow my fold on them. Unless they’re printed on rolls of two-ply quilted extra-soft toilet paper, I anticipate them having no market value at all.
If you think Krugman has gone b@+ $#!+ crazy just wait. When the Democrats lose control of the Senate, Preidency or both Saint Paul will once again find his inner fiscal and monetary conservative, just like he did during the Bush years. I guarantee it!
This plan has already been tried and it didn’t work in the late 90s either. Ya know, back when internet start up companies paid employees in stock options. That stock in Pets.com is gonna be worth a mint so get to programming, code monkey!
Here’s a Functionally equivalent alternative.
Functionally equivalent.
Functionally equivalent.
To sell Moral-equivalent obligation coupons.
Functionally equivalent.
What more can this man do to suggest that other people blow their money?
So, worthless scraps of paper whose value is inflated away after one year where you will gain absolutely no extra US Dollars (let alone extra value) and Krugman expects people to buy them?
I think we should pass a law requiring politicians to be paid in T-bills.
I keep thinking there is a great movie scenario here: The three-trillion dollar coin heist!
But imagine someone did steal it. What could they do with it? Nothing.
It is mindboggling the stupidity that gets printed in the NYT under Krugman’s name.