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View Diary: Galbraith: Government Doesn't Have to Borrow to Spend (36 comments)

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  •  So why does the coin need to be platinum? (2+ / 0-)
    Recommended by:
    BruceMcF, CoyoteMarti
    so long as the coin happened to be platinum.
    •  That was the bill that was passed in the 90's. (4+ / 0-)

      It allowed for the minting of large denomination platinum coins. It did not put any limit on the denomination so, for example, one could mint 50 $100billion coins and deposit as many as required in the Federal Reserve to return sufficient bonds to stay under the debt ceiling as long as necessary.

      That wasn't the purpose of the bill, of course ~ the purpose of the bill was to allow the minting of collectible large denomination coins. Large denomination was just to allow minting of coins larger than the smallest Treasury Reserve note (that is, cash). There was no concept of billion dollar or trillion dollar coins ... but the law does not have a cap, so billion or trillion dollar coins is taking advantage of a loophole.

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      by BruceMcF on Fri Oct 04, 2013 at 06:54:48 PM PDT

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