Skip to main content

A little disconnect: what President Obama, through Treasury and the Federal Reserve, really said last Saturday:

"We're running out of money because the Republican House may not allow us to float any more debt; so I took the Platinum Coin off the table just to ensure that we would!

Next month, I'll give you the gift of austerity, because, naturally, we're now really gonna run out of money!"

Despite Saturday's announcements by the Treasury and the Fed the Platinum Coin Seigniorage (PCS) legislation is still on the books. For the President not to use it to fill the public purse with enough funds to banish the fiscal conditions that underlie austerity politics -- the national debt, and the ability to cover the deficit for a long time to come -- is inexcusably corrupt, fiscally and economically irresponsible, and completely opposed to the public purpose that the President is supposed to serve.

So, I want to tell the President that for as long as PCS is on the books, and he and others are claiming that we need austerity because we are “running out of money,” he has the duty and the obligation to mint a game-changing High Value Platinum Coin, for example, a $60 T platinum coin. After this legal tender coin is credited by the Fed, the presence of $60 T in the Treasury General Account (TGA), and its immediate use to begin paying off the national debt, will make it very plain that there is no need for austerity; no need to cut SS, Medicare, and Medicaid; no need to cut Head Start, no need to cut anything that's working.

Yesterday, the White House line was that temporary fixes to the debt ceiling problem like the platinum coin would not solve the budgetary and political problems faced by the Government. Our mainstream media people did their thing by failing to call out the President on that – probably because they, themselves, have never dared think about any other PC option apart from the Trillion Dollar Coin. It's easy to see, however, that a $60 T coin wouldn't be a “temporary fix,” spawning crises every few months, even if it wouldn't last forever. The fact that a $1 Trillion Dollar Coin would not solve our debt ceiling problem for very long, isn't an argument for taking High Value PCS (HVPCS) off the table at all.

So, I call on the President to mint that $60 T coin now! I call on him to abandon austerity and to create financial plenty in Federal fiscal policy by using game-changing HVPCS. Austerity and “grand bargains” are “the great betrayal!” We don't need such “greed bargains.” We need a full public purse, and then we need to get Congress to open the purse for programs that fulfill public purpose.

I call on others to join me in beginning again to blog, comment, facebook, and tweet about PCS; but this time to forget about the TDC, which was always the wrong coin, and focus on #minttheHVPC instead.

Up the ante! Make this about ending austerity, and using the right platinum coin to create the political space needed for doing it! Forget about them taking PCS off the table! As long as it's legal it's still on the Table! Mint that HVPC! End Austerity!

(Cross-posted from Correntewire.com.)

EMAIL TO A FRIEND X
Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags

?

More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

  •  I think there is a consensus emerging (3+ / 0-)
    Recommended by:
    coffeetalk, Deep Texan, FG

    that the platinum coin isn't a serious alternative to solve the expiring debt ceiling.

    "let's talk about that"

    by VClib on Tue Jan 15, 2013 at 02:02:39 PM PST

  •  If you could see me now you would know that (7+ / 0-)

    my paw is in the air, my eyes are closed and I have just shouted, "Amen!"

    Moving forward - I am at work on a diary that discusses the resistance, from progressives, to HVPCS and what might be the psychology behind that. Next I'm on to one that will get down into the weeds on where money actually comes from and how that all works, coins (circulation and collector) and bills. I think that may help some people just in terms of getting down to the nuts and bolts stuff. Somewhere in there I'm off to California to do business in the south and then up to Sonoma County, where I am from, to see family. I'm thinking I will have a lot of reading time so I'm really on the hunt for things I can download and take with me. The more suggestions the better.

    "When in doubt, do the brave thing." - Jan Smuts

    by bunnygirl60 on Tue Jan 15, 2013 at 02:30:19 PM PST

  •  I agree with you, if only because (7+ / 0-)

    it makes plain the fact that the President, and many others, are making a choice.  Austerity is a choice. Circumstances aren't forcing him into it, the hand of God isn't forcing him into it, an Almighty Impartial Market isn't forcing him into it. He's in this situation b/c he wants to be. There's been at least two chances for him to walk away from this situation already that he has, apparently deliberately, tanked.  And if it wasn't deliberate, then he is incompetent, which I don't for one minute believe.

    The fact that he won't even mint the TDC to short-circuit the Republicans' hostage-taking pretty much tells me everything I need to know.

    However, consensus has developed, in the wrong direction, and despite great work like yours and confirmation from people like Krugman, that this is just a silly idea (both your current idea and the TDC), that the Powers that Be aren't going to allow it, and they're right not to.

    So people will stand around and nod sagely about what a dumb idea it was, and we will either go into default or cut Medicare and Social Security.

    I'm sorry letsgetitdone, but I don't know how to get it done.

    if necessary for years; if necessary, alone

    by SouthernLiberalinMD on Tue Jan 15, 2013 at 02:42:45 PM PST

    •  I don't know about LGID, but I think it is a (5+ / 0-)
      Recommended by:
      offgrid, JugOPunch, psyched, Ian S, katiec

      process. Three weeks ago only a few tiny voices deep inside the MMT community were even thinking about this idea and only a very few people more than that really had taken a look at the muscle and flexibility made possible through having a fiat currency. Now, literally hundreds of thousands of people have thought about it. They may still be confused and they may still not understand the functional difference between a fiat currency and an actual Fiat but they weren't even asking the questions before #mintthecoin. I can guaran-damn-tee you this President sure wasn't.

      He is right not to be using it against the debt ceiling. That is a battle that needs to be fought. When I hear him talking "austerity" it actually makes me yell at the poor innocent television but no matter how it turns out, we will, as you have correctly said, know his true colors once we come out the other side. (And we will come out because I do believe he is going to prevent default.)

      On the other paw, the discussion about HVPCS is only just beginning. It hasn't even had time yet to catch its breath from all the progress and events of the past two weeks. I don't think we know, yet, how to get it done but I think talking about it and keeping momentum under it and continuing to make noise is all amplified and made easier by the success of the hashtag campaign.

      I actually have a little faith that Wall Street and Main Street are going to collectively figure out that thar's gold in them thar' hills and we are going to catch momentum from a whole different source. When we are talking about this kind of money do you really think somewhere there aren't a bunch of guys in very expensive suits having the conversation?

      "When in doubt, do the brave thing." - Jan Smuts

      by bunnygirl60 on Tue Jan 15, 2013 at 03:44:09 PM PST

      [ Parent ]

      •  It is a process (3+ / 0-)
        Recommended by:
        psyched, katiec, SouthernLiberalinMD

        And I've been part of it since the very first blog post that actually mentioned PCS. I didn't write the first post which primarily focused on PCS, on January 3, 2011, that was by beowulf (Carlos Mucha), who wrote it partly in response to my persistent urging. But two days later, I posted my first one focused on it and then blogged it consistently for 6 months before it his the MSM for the first time. Then when the mainstream dropped it after August 1, 2011, I blogged it frequently from then until early December of 2012 when it hit the mainstream once again, where it's been until the unprecedented explosion in January. So, I've been immersed in the process since it began and at each stage of its development. We're now in a new stage where the President has tried to kill this. It's up to us to see to it that this doesn't die.

        •  And now you have more help than you (0+ / 0-)

          have had before so the process is continuing to succeed. The President hasn't gotten a LOT of what he has wanted so let's help to make sure he doesn't get to kill HVPCS.

          The thing about HVPCS that is what I was saying above, for a long time it has just been a tiny group of brave MMTers crying out in the wilderness, then a frigging MIRACLE happened and #mintthecoin caught fire. Now guys in expensive suits have heard you. They are plotting. They are going to want this to happen. That is why I think it will. Our fight has got to be to make it happen sooner and to get the spending directed where we want it to go.

          This last is going to require taking the House back, IMHO, but the coin(s) can be minted well before that.

          BTW - I saw, in a comment on one of your diaries or one of mine, someone talking about the idea of minting many ultra high value platinum coins that could actually be held by foreign governments or corporations. I thought that was kind of an interesting idea. Off topic but interesting.

          "When in doubt, do the brave thing." - Jan Smuts

          by bunnygirl60 on Tue Jan 15, 2013 at 05:52:21 PM PST

          [ Parent ]

        •  You're right. I'll help. n/t (0+ / 0-)

          if necessary for years; if necessary, alone

          by SouthernLiberalinMD on Wed Jan 16, 2013 at 07:19:46 AM PST

          [ Parent ]

      •  It is just a matter of time before the greed suits (0+ / 0-)

        figure out that there is platinum coin press at the mint. They will be lining up to mint their own congressional funding.

        An honest heart being the first blessing, a knowing head is the second..Jefferson's Letter to Peter Carr

        by JugOPunch on Tue Jan 15, 2013 at 05:16:32 PM PST

        [ Parent ]

      •  How would Wall Street like it? Why? (0+ / 0-)
      •  I don't know if he's right not to use it (1+ / 0-)
        Recommended by:
        Calgacus

        in the debt ceiling fight. The debt ceiling fight is, essentially, a game of chicken.  The TDC would give him leverage, essentially something to use as a viable bluff.

        But, as I said, he already gave up leverage over the Republicans (twice), so my faith that he wants any leverage over them is pretty low.

        You are right about the HVPC discussion; I think when I wrote that comment I was just feeling sour. (the environmental news gets me down. the loss of Aaron Swartz was no help either).

        The challenge is how to keep the discussion going and not let it die under the weight of the condescension of highly-placed people (though as I mentioned elsewhere, Bernanke  doesn't have any room to be condescending to anyone else on fiscal policy, after the crap he's been involved with over the past 15 years).

        if necessary for years; if necessary, alone

        by SouthernLiberalinMD on Wed Jan 16, 2013 at 07:19:19 AM PST

        [ Parent ]

    •  That's right! (4+ / 0-)

      Except he can still use consols to get out of the box. Or even go back to the TDC, claiming that he changed his mind because the Rs were so unreasonable. Again, as long as the law is there on the books, it's not really off the table!

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site