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ProfKrug: 'Release the Coin!' ($1T coin)
01-10-2013, 09:44 PM
Post: #1
ProfKrug: 'Release the Coin!' ($1T coin)
NYT -- Krugman:
http://www.nytimes.com/2013/01/11/opinio...&seid=auto

Quote:n case you’re wondering, no, this wouldn’t be an inflationary exercise in printing money. Aside from the fact that printing money isn’t inflationary under current conditions, the Fed could and would offset the Treasury’s cash withdrawals by selling other assets or borrowing more from banks, so that in reality the U.S. government as a whole (which includes the Fed) would continue to engage in normal borrowing. Basically, this would just be an accounting trick, but that’s a good thing. The debt ceiling is a case of accounting nonsense gone malignant; using an accounting trick to negate it is entirely appropriate.

But wouldn’t the coin trick be undignified? Yes, it would — but better to look slightly silly than to let a financial and Constitutional crisis explode.

Now, the platinum coin may not be the only option. Maybe the president can simply declare that as he understands the Constitution, his duty to carry out Congressional mandates on taxes and spending takes priority over the debt ceiling. Or he might be able to finance government operations by issuing coupons that look like debt and act like debt but that, he insists, aren’t debt and, therefore, don’t count against the ceiling....

....it’s the president’s duty to do whatever it takes, no matter how offbeat or silly it may sound, to defuse this hostage situation. Mint that coin!
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01-11-2013, 04:40 AM
Post: #2
RE: ProfKrug: 'Release the Coin!' ($1T coin)
I agree with Krugman but still feel the 14th Amendment solution is the best option. Section 4 of that amendment had the specific intent of keeping the legislators from the repatriated states from finding ways to keep the United States from paying its bills, particularly those bills incurred as a result of putting down their insurrection.

I say push the Constitutional option first and use the 1 trillion dollar coin gimmick as a last resort.

GOTV in 2014
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01-11-2013, 10:12 AM
Post: #3
RE: ProfKrug: 'Release the Coin!' ($1T coin)
(01-11-2013 04:40 AM)pappy Wrote:  I agree with Krugman but still feel the 14th Amendment solution is the best option. Section 4 of that amendment had the specific intent of keeping the legislators from the repatriated states from finding ways to keep the United States from paying its bills, particularly those bills incurred as a result of putting down their insurrection.

I say push the Constitutional option first and use the 1 trillion dollar coin gimmick as a last resort.

I hear you, Pappy, but I've read in several different venues that for some reason, the Prez -- who of course is a former constitutional law professor -- doesn't seem to think the 14th amendment is an option at all.
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01-11-2013, 10:59 AM
Post: #4
RE: ProfKrug: 'Release the Coin!' ($1T coin)
(01-11-2013 10:12 AM)janedrake Wrote:  
(01-11-2013 04:40 AM)pappy Wrote:  I agree with Krugman but still feel the 14th Amendment solution is the best option. Section 4 of that amendment had the specific intent of keeping the legislators from the repatriated states from finding ways to keep the United States from paying its bills, particularly those bills incurred as a result of putting down their insurrection.

I say push the Constitutional option first and use the 1 trillion dollar coin gimmick as a last resort.

I hear you, Pappy, but I've read in several different venues that for some reason, the Prez -- who of course is a former constitutional law professor -- doesn't seem to think the 14th amendment is an option at all.

I think most who argue that the 14th Amendment could not be used by the President use Article1, Section 8 of the constitution as their basis.

Quote:Clause 1. The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;

Clause 2. To borrow Money on the credit of the United States;

In their interpretation the only body authorized to enforce the 14th Amendment would be Congress and not the President based on the above as well as some of the language in the 14th Amendment. Specifically Section 5,

Quote:Section 5. The Congress shall have power to enforce, by appropriate legislation, the provisions of this article.

The problem I see with these arguments is that the refusal of Congress to raise the debt limit (or even the existence of the law demanding the periodic raising of the limit) goes against the language of the Amendment in that rather than enforcing it they are attempting to circumvent their responsibility to pay the debt or in the language of the Amendment they are in fact questioning the validity of the debt.

Well that is my take on it anyway.

GOTV in 2014
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