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View Diary: Platinum coin might be legally required in absence of debt limit increase (144 comments)

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  •  something I have always been curious about (1+ / 0-)
    Recommended by:
    pdx kirk

    I am new to this trillion dollar coin idea and I just have one question -- why does it have to be a coin? It can't be a bill?

    Civility, courtesy, kindness. The CK mantra.

    by rexymeteorite on Wed Jan 09, 2013 at 12:50:33 PM PST

    •  and why must it be round with someones face on it? (0+ / 0-)

      Why not a carved cylinder of dancing penguins? Or maybe a platinum magic wand?

      .....it's on the table, under the watermelon she demurred. Thanks, I was planning on shaving anyway he replied.

      by pdx kirk on Wed Jan 09, 2013 at 12:53:45 PM PST

      [ Parent ]

    •  "Commerative" coins can be minted. (0+ / 0-)

      ah. someone help me with this word...

      Notice: This Comment © 2013 ROGNM

      by ROGNM on Wed Jan 09, 2013 at 12:54:01 PM PST

      [ Parent ]

    •  I dont think so but (0+ / 0-)

      someone will come along and explain. It cant be gold or silver etc either. I forget. Ive pretty much ignored the topic myself, rexy, because I think its just about the most absurd thing I've ever heard. Is this any way to run a country??!?

      Get out there and get peace, think peace, live peace, and breathe peace, and you'll get it as soon as you like.” ~ John Lennon

      by Lady Libertine on Wed Jan 09, 2013 at 12:54:01 PM PST

      [ Parent ]

      •  I dunno, sounds ridiculous. (0+ / 0-)

        But if it works, I am not specifically opposed to the idea.

        I highly doubt its a practical solution to anything, though. Just because it might technically work, doesn't mean its realistic.

        Civility, courtesy, kindness. The CK mantra.

        by rexymeteorite on Wed Jan 09, 2013 at 12:56:20 PM PST

        [ Parent ]

    •  The Treasury is legally able ... (5+ / 0-)

      to mint platinum coins of any denomination.

      That isn't true of bills.

      It's due to a loophole in the 1997 Commemorative Coins Act.

      The thing about quotes on the internet is you cannot confirm their validity. ~Abraham Lincoln

      by raboof on Wed Jan 09, 2013 at 12:55:34 PM PST

      [ Parent ]

    •  The Treasury (1+ / 0-)
      Recommended by:
      rexymeteorite

      is limited to issuing no more than $350 million in US Notes. This comes from a Civil War era law that hasn't changed. US Notes are issued by the Treasury, while Federal Reserve Notes are issued by the Fed. Both are money.

      The Treasury is not constrained in the amount of coinage that can be issued. The US could pay all its obligations in $1 coins, and not breach the debt ceiling. US Mint seigniorage profits count as revenue to the Government (no different than Tax income) - A million one dollar coins cost the mint $0.18 to produce. When this coin is shipped to the fed, the Treasury account is credited by $1. Net revenue to the Government therefore is $0.82. This $0.82 can be used to fund spending, that would otherwise be considered deficit spending.

      However, paying by $1 coins is rather tedious and wasteful. It is in this context that the $1 Trillion coin makes sense.

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