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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
too small...

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....

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Comment Preferences

  •  Tip Jar (2+ / 0-)
    Recommended by:
    Renee, Orinoco

    I am, as apparently we all are,

    by doomedtorepeathistory on Wed Dec 12, 2012 at 09:20:41 PM PST

  •  Interesting idea (0+ / 0-)

    Unfortunately for us, the wealthy already have the equivalent of million dollar and billion dollar coins. They are called corporations.

    While there is no statutory requirement that someone selling a corporation for a couple of billion dollars spend the proceeds on another corporation, in practice there is nothing else worth billions of dollars to spend that kind of money on.

    I say unfortunately for us, because that money is removed from the brick and mortar economy where most of us live and work and do business. Once money is removed from circulation on Main Street, it doesn't matter much whether the money is used to trade corporation ownership documents or platinum coins, it is still unavailable for wage increases, goods and services purchases which would require more jobs, and of course, tax revenues to pay for social programs and national infrastructure.

    We do not want to neutralize chunks of wealth, that is the problem, not the solution. We want to put that money back into circulation in the  real economy, not in the insular casino economy of Wall Street gamblers.

    The solution to wealth inequality is to reduce wealth inequality. Tax policy is probably the cleanest solution with the fewest side effects. The people benefiting from wealth inequality will fight this tooth and nail, calling it 'redistribution' 'socialism' and 'communism' and if that doesn't work, they'll probably call it 'sharia law' and 'terrorism'.

    We are in a class war, and there is no easy way out. We must fight or we will lose. Inasmuch as we haven't been fighting, we have been losing. Had a pay raise lately? Mortgaging our property to buy cheap junk from China is not a real solution to losing our wealth to our own home-grown economic terrorists.

    "The problems of incompetent, corrupt, corporatist government are incompetence, corruption and corporatism, not government." Jerome a Paris

    by Orinoco on Thu Dec 13, 2012 at 06:58:00 AM PST

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