Heart Ache – Treasury nixes trillion dollar coin

posted at 7:01 pm on January 12, 2013 by Jazz Shaw

And a great sigh was heard across the land. The dreams of a yearning nation will, it seems, be left unfulfilled. Yes, my friends, even worse than when Mighty Casey Struck Out, the Treasury Dept. has ruled out the minting of the $1T coin to solve our fiscal woes.

The Treasury Department will not mint a trillion-dollar platinum coin to get around the debt ceiling. If they did, the Federal Reserve would not accept it.

That’s the bottom line of the statement that Anthony Coley, a spokesman for the Treasury Department, gave me today. “Neither the Treasury Department nor the Federal Reserve believes that the law can or should be used to facilitate the production of platinum coins for the purpose of avoiding an increase in the debt limit,” he said.

This will surely come as a stunning blow to my friend Joe Weisenthal of Business Insider, who has been having far too much fun with the idea for days on end now. In fact, if for some reason you were watching MSNBC this morning with Chris “Uncomfortable Calling The Honored Dead Heroes” Hayes, you’d have seen Joe engaged in a lively debate on the subject. In it, both the host and the guests embarked upon an amazing exploration of why such a route, while unlikely, was actually legal and possible. In fact, the Treasury could mint … wait for it … a 100 Trillion dollar coin if they wished. Because, you see, money isn’t real.

They did eventually get around to noting that the magical creation of massive amounts of US currency could result in inflation and skyrocketing prices, but the preceding discussion was jaw dropping to say the least. In fact, Joe was so impressed that he rushed to the keyboard to publish a piece in praise of Hayes’ insightful analysis.

At long last I get it, and it’s only thanks to the creative thinking arising from these trying times. The only problem here, if I may submit my own modest proposal, is that it doesn’t go far enough. In fact, I’m feeling rather sheepish at the moment for all the years I wasted embracing conservative economic theories. What was I thinking?

The real solution is not a 1 trillion dollar coin nor, as was expressed during the show linked above, a One Hundred Trillion Dollar Coin, but a ONE KERJILLION DOLLAR COIN. Once this is deposited in the treasury, the world will awaken anew.

Think about it. Since money isn’t real, there aren’t any actual rules. With the One Kerjillion Dollar Coin safely ensconced in the Treasury, we can all quit our jobs. In fact, we won’t even have to leave our homes, except for the times when we go out to parties, restaurants or sailing on our yachts. And I don’t just mean the 1% here… I’m talking about every last man woman and child in the nation. Everyone can have limitless unemployment checks to the tune of $50K per month. Hell.. let’s make it $500K per month. We’ll all live in mansions and travel in private jets.

The only cloud I see on our horizon is that we’ll need serious immigration reform, but with absolutely no path to citizenship. You see, the citizens will be paying out the fruits of the One Kerjillion Dollar Coin to an army of documented, but non-citizen workers who will build and maintain our homes, pick up and cook our food, drive our limosenes and pilot our jets. Oh… and handling all of those daily tasks like keeping the trash picked up, fixing things, building roads and all the rest.

Yes, it’s a bright, sunny future. If only we can get Treasury to reconsider. Here’s hoping, fellow future gazillionaires.


Related Posts:

Breaking on Hot Air

Blowback

Note from Hot Air management: This section is for comments from Hot Air's community of registered readers. Please don't assume that Hot Air management agrees with or otherwise endorses any particular comment just because we let it stand. A reminder: Anyone who fails to comply with our terms of use may lose their posting privilege.

Trackbacks/Pings

Trackback URL

Comments

Hey, who needs coins? Pharaoh Hussein’O can simply issue another magical ‘executive order’, declaring U.S. debt to be non-existent – - – PROBLEM SOLVED!

Pork-Chop on January 12, 2013 at 7:05 PM

Why didn’t they start with something smaller, like say … a one hundred billion dollar coin?

listens2glenn on January 12, 2013 at 7:08 PM

Yes, the graphic broke. Sorry. Substituted it. Mah bad…

Jazz Shaw on January 12, 2013 at 7:08 PM

Not enough metal on this planet…..
Or a large enough press to put the Obama Icon on it…

Electrongod on January 12, 2013 at 7:11 PM

I have good information that Harry Reid molests children regularly in his Senate office and that the $1,000,000,000,000-coin is safely stashed with the new $100 bills that were printed in 2011.

cane_loader on January 12, 2013 at 7:11 PM

Why didn’t they start with something smaller, like say … a one hundred billion dollar coin?

listens2glenn on January 12, 2013 at 7:08 PM

Shipping charges..

Electrongod on January 12, 2013 at 7:17 PM

Perhaps the Franklin Mint can issue a commemorative $1T coin made out of pure pewter with a platinum like plating and pure ZQ4 studs, in limited addition of course for just $49.99 plus S&H and taxes. This beautiful coin will have the likeness of the savior of America, Barack Hussein Obama, on one side and his beautiful wife Michelle on reverse. Engraved on the front side will be i irridebit debitum

Every liberal will want a dozen, of course purchased with ObamaDollars.

simkeith on January 12, 2013 at 7:18 PM

Well, they just haven’t learned a damn thing, have they?

It was the “coin” thing…that’s what done ‘em in.

How else can we explain the popularity of the Susan B, or that Sacajawea thing…or the Ike Dollars?

Nobody wants to deal with coins…even paper is growing out of fashion.

If they’d just print say a few hundred or so $1 billion bills…making sure Montgomery Burns gets to keep one…all of our troubles would vanish overnight.

Wanna bet that Jack Lew character is the one who came up with the idea? He’s been scamming the system since he took his first finance course and found out how incredibly dumb and gullible most folks are when you start talking really really big numbers….

coldwarrior on January 12, 2013 at 7:20 PM

simkeith on January 12, 2013 at 7:18 PM

LMAO!!!! You watch too much TV!!! ;-)

Scrumpy on January 12, 2013 at 7:22 PM

That this idea had legs, and maybe still does…leaves me speechless. And not in a good way.

22044 on January 12, 2013 at 7:23 PM

If they’d just print say a few hundred or so $1 billion bills…making sure Montgomery Burns gets to keep one…all of our troubles would vanish overnight.

Wanna bet that Jack Lew character is the one who came up with the idea? He’s been scamming the system since he took his first finance course and found out how incredibly dumb and gullible most folks are when you start talking really really big numbers….

coldwarrior on January 12, 2013 at 7:20 PM

What do you think treasury and the fed do every single day? The fed buys something like 70% of debt issued by the treasury. That means they’re monetizing the debt (just printing money). So I mean, we’re doing the coin trick every day.

I don’t understand why people aren’t as outraged about that as they are about printing a coin. It’d actually be better then what we have now, because at least you could get a few bucks for the coin from a collector.

Timin203 on January 12, 2013 at 7:23 PM

LMAO!!!! You watch too much TV!!! ;-)

Scrumpy on January 12, 2013 at 7:22 PM

I tend to think of the advertisements that arrive with the Sunday coupons. :)

22044 on January 12, 2013 at 7:29 PM

Timin203 on January 12, 2013 at 7:23 PM

I am just gobsmacked that daily the debt is being monetized…

What can one do about it?

Call write email etc… just falls on deaf ears and eyes :-(

Scrumpy on January 12, 2013 at 7:30 PM

I wonder what the next Brilliant Superiority Superior Smart Power
Idea is gonna be!!

canopfor on January 12, 2013 at 7:30 PM

So there are at least a couple of people in DC with two brain cells to rub together? Amazing!

RoadRunner on January 12, 2013 at 7:31 PM

Because, you see, money isn’t real.

Neither is that faerie tale world in which they live.

Resist We Much on January 12, 2013 at 7:34 PM

As well as this:

The Federal Reserve said it will expand its holdings of long-term securities with open-ended purchases of $40 billion of mortgage debt a month in a bid to boost growth and reduce unemployment.

“If the outlook for the labor market does not improve substantially, the committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases and employ its other policy tools as appropriate,” the Federal Open Market Committee said today in a statement at the end of a two-day meeting in Washington.

The FOMC said it would likely hold the federal funds rate near zero “at least through mid-2015.” Since January, the Fed had said the rate was likely to stay low at least through late 2014. The Fed said “a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the economic recovery strengthens.”

Chairman Ben S. Bernanke is enlarging his supply of unconventional tools to attack unemployment stuck above 8 percent since February 2009, a situation he has called a “grave concern.” The decision risks provoking a renewed backlash from Republicans, including presidential nominee Mitt Romney, who say Bernanke’s policies threaten to ignite inflation while doing little to spur the economy.

The Fed said it will continue its program to swap $667 billion of short-term debt with longer-term securities to lengthen the average maturity of its holdings, an action dubbed Operation Twist. The central bank will also continue reinvesting its portfolio of maturing housing debt into agency mortgage- backed securities.

http://www.businessweek.com/news/2012-09-13/fed-plans-to-buy-40-billion-in-mortgage-securities-each-month

Scrumpy on January 12, 2013 at 7:34 PM

Every liberal will want a dozen, of course purchased with ObamaDollars.

simkeith on January 12, 2013 at 7:18 PM

simketh:Haha,lol,..

…that is a great idea,and maybe,a portion of the sales could
be kicked back,er,funnelled into a Democrat Candidate(s) Slush
Fund type of Campaign Lootery thingy!!

canopfor on January 12, 2013 at 7:34 PM

22044 on January 12, 2013 at 7:29 PM

Oh Noes! Say it ain’t so! You support TFTM!!!

Stop buying a paper at once!! ;-)

Scrumpy on January 12, 2013 at 7:36 PM

FTTM = FCTM oopsie

Scrumpy on January 12, 2013 at 7:36 PM

That this idea had legs, and maybe still does…leaves me speechless. And not in a good way.

22044 on January 12, 2013 at 7:23 PM

Exactly.

ThePrimordialOrderedPair on January 12, 2013 at 7:40 PM

Results for #mintthecoin

https://twitter.com/search?q=%23mintthecoin

canopfor on January 12, 2013 at 7:40 PM

So there are at least a couple of people in DC with two brain cells to rub together? Amazing!

RoadRunner on January 12, 2013 at 7:31 PM

…I feel an E O coming!

KOOLAID2 on January 12, 2013 at 7:42 PM

And now a message from Team ProgTard!!!

It Could Work – Young Frankenstein
**********************************

http://www.youtube.com/watch?v=10KObAQFmlY

canopfor on January 12, 2013 at 7:46 PM

Because, you see, money isn’t real.

You utter moron, I’ll teach you what isn’t real.

In one hand I have a a pound of money. In the other hand I have a pound of liberal ideals. Pick one and let me see you attempt to buy a $5 footlong from Subway with the contents of the hand you picked.

MelonCollie on January 12, 2013 at 7:49 PM

Addendum: upon re-reading, if Mr.Shaw was saying this of himself and not quoting a liberal, my apologies for the accidental friendly fire.

MelonCollie on January 12, 2013 at 7:50 PM

Obama: “Say, Joe, how ’bout if we mint a coin for one brazillion?”

Biden: “Good idea, boss. But which Brazilian should we give it to?”

predator on January 12, 2013 at 7:51 PM

Hmmmmmmmmmmmmm………….

Former Mint Director Who Wrote ‘Trillion-Dollar Coin’ Law Explains Why the Coin Isn’t a Bad Idea
Jan 8 2013
**********

It’s not every day you get an email from a former director of the U.S. Mint (unless you’re married to one, probably) — but it’s also not every day that you write about the very real possibility that the U.S. Treasury might mint a platinum coin worth one trillion dollars.

While we at Gawker support the trillion-dollar coin as much for the possibility of making it 16 feet tall and engraved with the runes from Zep IV as for its policy merits, it’s good to hear that the co-drafter of the law itself is essentially on board. Here’s his full email:
===============

I’m the former Mint director and Treasury chief of staff who, with Rep. Mike Castle, wrote the platinum coin law (Sec. 5112 of title 31, United States Code) and oversaw minting of the original coin authorized by the law, so I’m in a unique position to address some confusion I’ve seen in the media about the $1 trillion platinum coin proposal.
———————–

*In minting the $1 trillion platinum coin, the Treasury Secretary would be exercising authority which Congress has granted routinely for more than 220 years. The Secretary’s authority is derived from an Act of Congress (in fact, a GOP Congress) under power expressly granted to Congress in the Constitution (Article 1, Section 8). What is unusual about the law is that it gives the Secretary discretion regarding all specifications of the coin, including denominations.

*The accounting treatment of the coin is identical to the treatment of all other coins. The Mint strikes the coin, ships it to the Fed, books $1 trillion, and transfers $1 trillion to the treasury’s general fund where it is available to finance government operations just like with proceeds of bond sales or additional tax revenues. The same applies for a quarter dollar.

*Once the debt limit is raised, the Fed could ship the coin back to the Mint where the accounting treatment would be reversed and the coin melted. The coin would never be “issued” or circulated and bonds would not be needed to back the coin.

*There are no negative macroeconomic effects. This works just like additional tax revenue or borrowing under a higher debt limit. In fact, when the debt limit is raised, Treasury would sell more bonds, the $1 trillion dollars would be taken off the books, and the coin would be melted.

*This does not raise the debt limit so it can’t be characterized as circumventing congressional authority over the debt limit. Rather, it delays when the debt limit is reached. Those who claim otherwise are misinformed or pursuing an agenda.

*This preserves congressional authority over the debt limit in a way that reliance on the 14th Amendment would not. It also avoids the protracted court battles the 14th Amendment option would entail and avoids another confrontation with the Roberts Court.

*Any court challenge is likely to be quickly dismissed since (1) authority to mint the coin is firmly rooted in law that itself is grounded in the expressed constitutional powers of Congress, (2) Treasury has routinely exercised this authority since the birth of the republic, and (3) the accounting treatment of the coin is entirely routine.

*Yes, this is an unintended consequence of the platinum coin bill, but how many other laws have had unintended consequences? Most, I’d guess. The fact that this use of the authority granted by Congress is unintended has no bearing on its legality or constitutionality.

Philip N. Diehl
United States Mint

======================

http://gawker.com/5974218?utm_campaign=socialflow_gawker_twitter&utm_source=gawker_twitter&utm_medium=socialflow

canopfor on January 12, 2013 at 7:56 PM

canopfor on January 12, 2013 at 7:56 PM

It is all so logical isn’t it!

Boggles the mind who we have along with Obumbler, running the country, into the ground…

My fav line: “While we at Gawker support the trillion-dollar coin as much for the possibility of making it 16 feet tall and engraved with the runes from Zep IV as for its policy merits….”

I am all for that!! ;-)

Scrumpy on January 12, 2013 at 8:02 PM

Oh Noes! Say it ain’t so! You support TFTM!!!

Stop buying a paper at once!! ;-)

Scrumpy on January 12, 2013 at 7:36 PM

Yeah, I won’t buy the Washington Post. But they offer to send me some coupons & sales inserts each weekend at no charge. :)

What is FCTM?

22044 on January 12, 2013 at 8:04 PM

22044 on January 12, 2013 at 8:04 PM

Fifth Column Treasonous Media H/T to SW!!!

Scrumpy on January 12, 2013 at 8:08 PM

*Once the debt limit is raised, the Fed could ship the coin back to the Mint where the accounting treatment would be reversed and the coin melted.

And if the debt limit isn’t raised then the Executive branch just keeps the money and issues another trillion dollar coin whenever it needs more money, thereby relegating Congress’ “control of the purse strings” to nothing but silly blather.

*There are no negative macroeconomic effects. This works just like [] borrowing under a higher debt limit. In fact, when the debt limit is raised, Treasury would sell more bonds, the $1 trillion dollars would be taken off the books, and the coin would be melted.

*This does not raise the debt limit so it can’t be characterized as circumventing congressional authority over the debt limit. Rather, it delays when the debt limit is reached. Those who claim otherwise are misinformed or pursuing an agenda.

LOL. It doesn’t raise the debt limit because it’s the executive branch ordering the Fed to print money to give to the Executive without having had Congress authorize that money. It doesn’t delay jack. It blows a hole through the separation of powers and lets the Executive branch become self-supporting by allowing it to authorize money to be printed for it anytime it wants. Anyone who thinks this is legal or even close to sane is a total friggin lunatic.

*This preserves congressional authority over the debt limit in a way that reliance on the 14th Amendment would not.

Philip N. Diehl
United States Mint


ROFLMAO! Man, this guy is one stone-cold idiot. Congress wouldn’t have any authority left, at all, as the executive branch would be self-funding and could do any damn thing it pleased.

This Diehl dolt is too dumb for words. Whatever high school gave him his diploma ought to be burned to the ground. This is beyond laughable. It’s scary that someone who held such a high position is such an utter imbecile. And he thinks that this idiocy should be written down as an argument? Holy sh!t.

Insanity and stupidity are the currency of our high officials.

ThePrimordialOrderedPair on January 12, 2013 at 8:12 PM

Call write email etc… just falls on deaf ears and eyes :-(

Scrumpy on January 12, 2013 at 7:30 PM

Yeah, you’re preaching to the choir. I think it was Paul Ryan who dramatically called this the most predictable financial crisis in history. And it’s true. Everyone with half a brain sees it coming and yet nothing ever gets done to try to fix it.

Timin203 on January 12, 2013 at 8:12 PM

Leaving for a while…
*poof*

Scrumpy on January 12, 2013 at 8:15 PM

The only cloud I see on our horizon is that we’ll need serious immigration reform, but with absolutely no path to citizenship. You see, the citizens will be paying out the fruits of the One Kerjillion Dollar Coin to an army of documented, but non-citizen workers who will build and maintain our homes, pick up and cook our food, drive our limosenes and pilot our jets. Oh… and handling all of those daily tasks like keeping the trash picked up, fixing things, building roads and all the rest.

I have seen the future and it’s Saudi Arabia. Screw that!

CC Senor on January 12, 2013 at 8:20 PM

canopfor on January 12, 2013 at 7:56 PM

It is all so logical isn’t it!

Boggles the mind who we have along with Obumbler, running the country, into the ground…

My fav line: “While we at Gawker support the trillion-dollar coin as much for the possibility of making it 16 feet tall and engraved with the runes from Zep IV as for its policy merits….”

I am all for that!! ;-)

Scrumpy on January 12, 2013 at 8:02 PM

Scrumpy:True dat:)

canopfor on January 12, 2013 at 8:22 PM

I am SO disappointed! Was looking forward to them casting a 40 foot diameter, three foot thick coin weighing 22,700 tons of pure platinum (to make it actually WORTH $1 trillion).

michaelo on January 12, 2013 at 9:14 PM

As soon as -bama creates his own purse strings by EO, his face needs to go on all the money.

The Caesars did it. He is acting no differently.

cane_loader on January 12, 2013 at 9:20 PM

The only cloud I see on our horizon is that we’ll need serious immigration reform, but with absolutely no path to citizenship. You see, the citizens will be paying out the fruits of the One Kerjillion Dollar Coin to an army of documented, but non-citizen workers who will build and maintain our homes, pick up and cook our food, drive our limosenes and pilot our jets. Oh… and handling all of those daily tasks like keeping the trash picked up, fixing things, building roads and all the rest.

This is how Rome fell.

cane_loader on January 12, 2013 at 9:22 PM

ROFLMAO! Man, this guy is one stone-cold idiot.

Yeah, I mean he only wrote the law in question. What does he know?

triple on January 12, 2013 at 10:17 PM

He’s also the reason your quarters have states on them, fwiw.

triple on January 12, 2013 at 10:20 PM

Evade the spending limit under the guise of the 14th A, get impeached.

Start the hearings in the House now, and finish them in the Senate after the referendum of 2014.

petefrt on January 12, 2013 at 10:32 PM

This is how Rome fell.

cane_loader on January 12, 2013 at 9:22 PM

Uncontrolled immigration has some of the same side-effects as slavery in that it not only devalues the labor of actual citizens (who can’t compete with cheap/’free’ labor), but it makes them lazy.

In the 1860′s in America – a slave owner would spend an hour hunting up and ‘supervising’ (sitting on his a$$ drinking booze) a couple of slaves to fix a fence when he should’ve been able to do it himself in fifteen minutes. And meanwhile the carpenter in town, a fellow citizen who voted and cared about the community, went out of business and moved away. Replace slaves with illegals and you have the situation today.

We let it go to the ultimate extreme and we’ll end up in something out of a sci-fi book I saw, where the illiterate near-brutes who actually did all the work went on strike for ridiculous wages…and promptly shut down the entire nation. Those in the ‘educated’ class who had a shred of motivation just had no practice in maintaining anything.

MelonCollie on January 12, 2013 at 10:44 PM

Why didn’t they start with something smaller, like say … a one hundred billion dollar coin?

listens2glenn on January 12, 2013 at 7:08 PM

Hell, that sounds like something you could leave to Franklin Mint.

BillH on January 12, 2013 at 11:23 PM

simkeith on January 12, 2013 at 7:18 PM

Spoke too soon. *sigh*

BillH on January 12, 2013 at 11:24 PM

Man, anything to keep from reducing spending.

Just incredible…

Dr. ZhivBlago on January 12, 2013 at 11:41 PM

Just as a quick question for the smarter folks who comment here, or possibly write here, Article 1 Section 8 of our Constitution places the minting and control of our currency squarely within the purview of the Legislative Branch, which means a $1 Trillion coin, or the minting of that increase in our currency would have to pass the House among other things. When did that change?

Flyovercountry on January 13, 2013 at 12:03 AM

Insanity and stupidity are the currency of our high officials.

ThePrimordialOrderedPair on January 12, 2013 at 8:12 PM

Those are now attributes for promotion.

Just as a quick question for the smarter folks who comment here, or possibly write here, Article 1 Section 8 of our Constitution places the minting and control of our currency squarely within the purview of the Legislative Branch, which means a $1 Trillion coin, or the minting of that increase in our currency would have to pass the House among other things. When did that change?

Flyovercountry on January 13, 2013 at 12:03 AM

With the coronation of our Lord and Saviour, His most Benevolent Oneness, Barack Obama.

ghostwalker1 on January 13, 2013 at 1:47 AM

Bahahahahahaahahahahahahahahaha

so when lil Barry talked bout CHANGE….. he really meant COINS

roflmmfao

donabernathy on January 13, 2013 at 2:05 AM

Every liberal will want a dozen, of course purchased with ObamaDollars.

simkeith on January 12, 2013 at 7:18 PM

Only valid if you call the toll-free number using your ObamaPhone.

Mr. D on January 13, 2013 at 8:46 AM

I find it interesting that these posts about the trillion dollar coin have been troll free.

Perhaps this is so stupid that even they can’t come up with a logical reason?

itsspideyman on January 13, 2013 at 9:31 AM

I find it interesting that these posts about the trillion dollar coin have been troll free.

Perhaps this is so stupid that even they can’t come up with a logical reason?

itsspideyman on January 13, 2013 at 9:31 AM

More or less. It literally is exactly like a small child playing storekeeper and saying that the tin-covered toy coin he has is worth a bajillion dollars. Except the coin is platinum and the child is the President.

That’s so utterly stupid, so hopelessly indefensible, that not even Dumbte or liveasaslaveanddie or Hon-duhhh can come up with a statement that wouldn’t make them even more of a laughingstock than they already are.

MelonCollie on January 13, 2013 at 9:38 AM

Man, anything to keep from reducing spending.

Just incredible…

Dr. ZhivBlago on January 12, 2013 at 11:41 PM

The debt ceiling isn’t about reducing spending. It’s about not paying for money congress has already authorized. It’s a bit like congress buying a car in 2012 and refusing to pay for it in 2013.

triple on January 13, 2013 at 2:19 PM

The Federal Reserve said it will expand its holdings of long-term securities with open-ended purchases of $40 billion of mortgage debt a month in a bid to boost growth and reduce unemployment.

Fakery. Do you know who the Federal Reserve is? Banks, that’s who.

So what this says is the banks are going to sell themselves some stinky mortgages.

Out of the goodness of their hearts, apparently. One thing is for certain, they aren’t using their own money.

BobMbx on January 13, 2013 at 7:35 PM