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View Diary: Of Blazing Saddles and platinum coins: Why minting a $1 trillion one is neither smart nor necessary (216 comments)

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  •  that's the least of the problems (2+ / 0-)
    Recommended by:
    hnichols, furi kuri

    The Pres. is not authorized to issue debt his own authority.

    You're handwaving around the central question: what do you think "ignoring the debt ceiling" means in practice?

    The simplest interpretation is that "ignoring the debt ceiling" means depositing Presidential bonds with the Fed.

    •  Not sure what you mean by "presidential bonds" (3+ / 0-)
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      turdraker, eztempo, Beetwasher

      What I mean is that Treasury continues to offer debt at auction in the expectation that primary dealers will continue to bid -- because Fed will continue to buy from them, because it accepts (or at least ian't prepared to challenge) the president's claim of authority.

      That may not be realistic, but don't see how it's "handwaving"

      Whatever the specific vehicle the POTUS used to get around the debt limit, it would ultimately depend on the Fed to go along (i.e. what if Treasury shows up with $1 trillion coin, and Fed says, "we don't think so"?)

      So I don't really see what we're arguing about.

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