Trillion Dollar Coins
Andrew Klavan writes a column and notes reasons for optimism in our winter of discontent:
1. Fracking. As I’ve said before, Obama and the EPA will ultimately be splatter on the windshield of this progress. There’s energy in them thar hills and eventually we’re going to get at it, whether these luddite environmental knuckleheads like it or not. That means wealth, energy independence, jobs, power and a reboot of Dallas. Obama may be choosing decline, but the rest of the country may well choose prosperity and growth in spite of him.
2. Federalism. Around the country, conservative governors are taking action that could galvanize reform nationwide. Right-to-work laws, state budget cuts, reduced property taxes and creative approaches to education. As prosperity follows these practices — and abandons California and Illinois and other lagging states — they will gain credence with the general population and make political stars of the governors who supported them.
3. Reality is on our side. When I call Obama a reactionary, what I mean is that he adheres to a grievance-based socialist ideology he learned in college from professors who were probably old even then. As these academics die and go to hell for all eternity, up-and-comers may begin to notice that the poor suffer under left-wing programs and rise under the free market, that education improves under conservative guidance and gets worse under liberals, and that big business actually gets more entrenched and powerful under the left while the right helps the little guy thrive. That, after all, will be the off-beat, radical position, and academics love to be off-beat and radical as long as everyone around them is being off-beat and radical too. A new generation is already on the rise that understands entitlements are unsustainable and that freedom works. It won’t be long at all before we begin to hear their voices in the mainstream. I hope. Continue reading
I have written before of a truly wacked out nostrum popular among bloggers on the Left in this country to have a coin minted with a trillion dollar value in order to “solve” the debt crisis. Go here to read my post on the subject. Now economist Paul Krugman, Nobel laureate and barking mad Leftist moonbat, has endorsed the proposal:
Enter the platinum coin. There’s a legal loophole allowing the Treasury to mint platinum coins in any denomination the secretary chooses. Yes, it was intended to allow commemorative collector’s items — but that’s not what the letter of the law says. And by minting a $1 trillion coin, then depositing it at the Fed, the Treasury could acquire enough cash to sidestep the debt ceiling — while doing no economic harm at all.
So why not?
It’s easy to make sententious remarks to the effect that we shouldn’t look for gimmicks, we should sit down like serious people and deal with our problems realistically. That may sound reasonable — if you’ve been living in a cave for the past four years.Given the realities of our political situation, and in particular the mixture of ruthlessness and craziness that now characterizes House Republicans, it’s just ridiculous — far more ridiculous than the notion of the coin. Continue reading
The idea of minting trillion-dollar platinum coins has been a lunatic nostrum of the wacked out left for about a year. Today Brad Plumer on the wonk blog at the Washington Post looks at this scam:
Enter the platinum coins. Thanks to an odd loophole in current law, the U.S. Treasury is technically allowed to mint as many coins made of platinum as it wants and can assign them whatever value it pleases.
Under this scenario, the U.S. Mint would produce (say) a pair of trillion-dollar platinum coins. The president orders the coins to be deposited at the Federal Reserve. The Fed then moves this money into Treasury’s accounts. And just like that, Treasury suddenly has an extra $2 trillion to pay off its obligations for the next two years — without needing to issue new debt. The ceiling is no longer an issue.