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View Diary: 'Grown-ups don't mint trillion dollar coins' and other childhood fantasies (224 comments)

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  •  It's not a bailout. (7+ / 0-)

    This is more of an accounting trick than anything else, and works almost exclusively against the Debt Limit fiasco Congress has foisted upon itself for the longest time.

    -9.88, -7.44 Social Security as is will be solvent until 2037, and the measures required to extend solvency beyond that are minor. -- Joe Conanson

    by wordene on Wed Jan 09, 2013 at 08:55:56 AM PST

    [ Parent ]

    •  It actually isn't much different from (2+ / 0-)
      Recommended by:
      offgrid, katiec

      increasing the debt limit and having the Fed buy all the bonds.

    •  It's really a way for the government (0+ / 0-)

      to "print" electronic money. The government ultimately creates our money, and it should have a way to create electronic money, which is what most of us use these days. Unfortunately the rules were written before there were electronics, never mind electronic money, and so our money is created by a Rube Goldberg system involving interbank T-bill auctions. The trillion dollar coin sounds weird because it's not really creating physical money. It works economically because having the government create electronic money is a normal and proper function of the federal government.

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