[Newsbot]

Title: Funny Money: Pundits float $1 trillion coin as answer to debt-ceiling standoff | Fox News
Category: Uncle Sam
Posted By: Robair
Date: 2013-01-07 13:44:37
Canadian

[Robair]

Quite the comedy routine down there lately.

If you're into dark, tragic humor.

[BartSimpson]

Robair Robair:

Quite the comedy routine down there lately.

If you're into dark, tragic humor.

Keep in mind that it's the Democrats proposing this as I say that they are correct in their interpretation of the law. It does, indeed, allow the Treasury to mint platinum coins of any denomination they want.

Of course, when I first heard this what immediately came to mind was the episode of The Simpsons where Mr. Burns went to Cuba with his $1 trillion bill.

[Canadian_Mind]

How much inflation would this cause? I'm not sure of america's GDP, but if it is 10 trillion per year, would one coin cause the inflation to go up 10% for that year?

[BartSimpson]

Canadian_Mind Canadian_Mind:

How much inflation would this cause? I'm not sure of america's GDP, but if it is 10 trillion per year, would one coin cause the inflation to go up 10% for that year?

That's unsure. What's funny is that the Treasury minting such a coin is no different, really, than the Federal Reserve ginning up and issuing $1 trillion in theoretical currency that they send to the banks electronically.

Both acts are equally inflationary given that both acts debase the currency in the same ratio.

Maybe the one is just a more tangible expression of debasement and that's what bothers the people who have small minds that can't get around the idea of theoretical currency.

[Public_Domain]

[BartSimpson]

Public_Domain Public_Domain:

Money is worthless.

Fiat currency is worthless. Real money has value unto itself.

There's a big difference and in the USA we haven't had real money in the form of paper currency since the 1950's and the coinage became fake after 1964.

Here is what US paper money used to look like:



And here is what modern US paper currency looks like:



Now look at the differences. In particular note that the old $5 note is redeemable in some sort of actual value. You could take that $5 to the Treasury and they'd pay you out an equivalent value in silver, gold, or land. The new $5 note is just a piece of paper. That's all.

[xerxes]

BartSimpson BartSimpson:

Robair Robair:

Quite the comedy routine down there lately.

If you're into dark, tragic humor.

Keep in mind that it's the Democrats proposing this as I say that they are correct in their interpretation of the law. It does, indeed, allow the Treasury to mint platinum coins of any denomination they want.

Of course, when I first heard this what immediately came to mind was the episode of The Simpsons where Mr. Burns went to Cuba with his $1 trillion bill.

Me too.

Watching the political news from the US in recent years is an exercise in self-abuse and this no exception.

[Canadian_Mind]

BartSimpson BartSimpson:

Canadian_Mind Canadian_Mind:

How much inflation would this cause? I'm not sure of america's GDP, but if it is 10 trillion per year, would one coin cause the inflation to go up 10% for that year?

That's unsure. What's funny is that the Treasury minting such a coin is no different, really, than the Federal Reserve ginning up and issuing $1 trillion in theoretical currency that they send to the banks electronically.

Both acts are equally inflationary given that both acts debase the currency in the same ratio.

Maybe the one is just a more tangible expression of debasement and that's what bothers the people who have small minds that can't get around the idea of theoretical currency.

It's all theoretical now, isn't it?

[BartSimpson]

Canadian_Mind Canadian_Mind:

BartSimpson BartSimpson:

Canadian_Mind Canadian_Mind:

How much inflation would this cause? I'm not sure of america's GDP, but if it is 10 trillion per year, would one coin cause the inflation to go up 10% for that year?

That's unsure. What's funny is that the Treasury minting such a coin is no different, really, than the Federal Reserve ginning up and issuing $1 trillion in theoretical currency that they send to the banks electronically.

Both acts are equally inflationary given that both acts debase the currency in the same ratio.

Maybe the one is just a more tangible expression of debasement and that's what bothers the people who have small minds that can't get around the idea of theoretical currency.

It's all theoretical now, isn't it?

You are quite right. One of my friends who pays attention told me that the US Mint is spending money to convert a series of $1 presses to being able to produce $100 notes. Essentially acknowledging that they plan on printing more $100 notes than they used to.

With the supply of US currency typically around $177 billion the past few years it would appear that the Mint is getting ready to up that supply. Maybe it is in anticipation of inflation, maybe it is to implement inflation. Either way, the result will be that same that the dollars in your wallet today will be worth less tomorrow...or at least sometime soon.