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View Diary: Krugman sez Mint That Coin (298 comments)

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  •  Explain how this would be inflationary? (5+ / 0-)
    Recommended by:
    DRo, BusyinCA, chickeee, dorkenergy, elwior

    Is minting more pennies inflationary? Congress made a huge mistake in passing this law. It is not what they thought it would be. But why should that worry us? The fact is the Sec Treasury has the authority. Period. We have been hearing about inflation and the bond zombies for years now. They are the reason the stimulus was not bigger. But the zombies never showed up. Just like Krugman has been saying for 5 years now. Congress can repeal this law only if the President allows it. Maybe this gives him leverage with Congress. As in repeal the coin law and the debt ceiling and he could sign both on the same day. hang it over Congress'es head like the sword of Damacles.

    But how is retiring debt inflationary? Do not the Republicans want to pay off the debt? We could wipe out the national debt without raising taxes on anyone. And save the expense of servicing the debt. And pass a real budget which Congress has failed to do for more than 4 years. Which is also illegal.

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