http://krugman.blogs.nytimes.com/201...-time-of-zero/
this seems utterly absurd to me. someone explain this in laymans terms.
printing a trillion dollar coin to pay off us debt
http://krugman.blogs.nytimes.com/201...-time-of-zero/
this seems utterly absurd to me. someone explain this in laymans terms.
the way i understand it, it's a trick that has nothing to do with actually servicing the debt or making things better, but just an accounting ploy that would let the government take on more debt without having to worry about raising the debt ceiling.
i dont understand the whole debt ceiling argument either. whats wrong with raising the debt ceiling? it seems inane to keep it static whilst completely ignoring the fact that the value of debt relative to a growing economy under inflation decreases.
also wouldnt this coin cause a massive inflationary spike?
republicans are dumbOriginally Posted by Rayne
well, the trillion dollar coin idea is just a work around of the debt ceiling. if the debt ceiling is raised, we borrow the money we need and pay with that, sending that money into the economy. if we mint the trillion dollar coin, exchange it for dollars at the federal reserve, and pay with that money, it goes into the economy the same way. either way the government is getting several hundreds of billions of dollars and spending it, which is always happening.
I think they want to use it as a lest refuge so republicans can't crash the economy if they don't want to cave to their demands.
The simpson's is becoming real?
No it would be a platinum coin, not paper money. There is a loophole that allows the government to make platinum coin worth whatever they want.
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