All the recent talk about the trillion dollar coin has revealed to me a perfect solution to the problems of wealth inequality and the national debt.
The solution is to mint not trillion dollar coins, but billion dollar coins and also to put them into circulation.
Why? I'll explain below:
We all know the uber-wealthy live in a different reality. In their world, ordinary possessions are of
trivial value. We read all the time of the fantastical ways they find to spend their money.
Here is a fantastical, but incredibly useful (to the rest of us) way for them to spend their money.
The treasury should mint billion dollar coins that are restricted legal tender.
By that I mean, coins that, once received, can only be exchanged for billion dollar coins.
Each billion dollar coin minted by the treasury would bring in a billion dollars
that could be used to pay down the national debt.
Since each billion dollar coin represnts a billion dollars that can no longer be used to claim a portion of the goods/services from the economy - that particular chunk of wealth would have been effectively neutralized. Even if the coin changes hands... Thats different from a $100 bill that can be exchanged for smaller bills at the treasury if you don't want to hold a $100 bill any longer.
Once a billion dollar coin goes into circulation, it must stay out there. Its like a game of musical chairs - somebody has to hold the coin and they can't really use it to buy stuff...
Who would hand over a billion dollars to possess a coin they could never redeem?
Think about it ... in the world of the uber-wealthy - forking over 10,000 for a cell phone
cover is not out of the question. For such people, the chance to hand over a billion dollars
and then be able to flaunt that rare - but obtainable coin - would be irresistible.
It would be the latest form of ultimate bling - sort of like rolling cigars using $100 bills in the 70s ...
At the moment, no one person could afford a trillion dollar coin.
But many people could afford a billion dollar coin.
And, things being the way they are, too many people could afford a million dollar coin - so thats
I only check in infrequently ( a couple times a day )
so, I apologize in advance for not responding quickly in case somebody feels like commenting
to this diary....