Dems Inspiration for One Trillion Dollar Coin

[tailfins]

We could just call him President Barack Mugabe.
http://static.guim.co.uk/sys-images/Guardian/Pix/pictures/2009/3/25/1237999328897/Zimbabwe-One-Hundred-Tril-001.jpg

[Tyr-Ziu Saxnot]

We could just call him President Barack Mugabe.
http://static.guim.co.uk/sys-images/Guardian/Pix/pictures/2009/3/25/1237999328897/Zimbabwe-One-Hundred-Tril-001.jpg
After that they can design and print the zillion dollar bill. It be just as valid as the trillion dollar one was.-:laugh2:

[Tyr-Ziu Saxnot]

http://www.marketoracle.co.uk/Article38068.html

Fed Policy of Phony Economic Growth Will Destroy the U.S. DollarEconomics (http://www.marketoracle.co.uk/Topic6.html) / US Economy (http://www.marketoracle.co.uk/Category29-All.html)Dec 15, 2012 - 10:53 AMBy: Peter_Schiff (http://www.marketoracle.co.uk/UserInfo-Peter_Schiff.html)
http://www.marketoracle.co.uk/images/topics/economics.gif (http://www.marketoracle.co.uk/Topic6.html)
http://www.marketoracle.co.uk/images/gold_star.gifBy upping the ante once again in its gamble to revive the lethargic economy through monetary action, the Federal Reserve's Open Market Committee is now compelling the rest of us to buy into a game that we may not be able to afford. At his press conference this week, Fed Chairman Bernanke explained how the easiest policy stance in Fed history has just gotten that much easier. First it gave us zero interest rates, then QEs I and II, Operation Twist, and finally "unlimited" QE3.

<ins style="margin: 0px; padding: 0px; display: inline-table; border: none; height: 90px; position: relative; visibility: visible; width: 728px;"><ins id="aswift_1_anchor" style="margin: 0px; padding: 0px; display: block; border: none; height: 90px; position: relative; visibility: visible; width: 728px;"><iframe allowtransparency="true" frameborder="0" height="90" hspace="0" marginwidth="0" marginheight="0" scrolling="no" vspace="0" width="728" id="aswift_1" name="aswift_1" style="margin: 0px; padding: 0px; left: 0px; position: absolute; top: 0px;"></iframe>Now that those moves have failed to deliver economic health, the Fed has doubled the size of its open-ended money printing and has announced a program of data flexibility that virtually insures that they will never bump into limitations, until it's too late. Although their new policies will create numerous long-term challenges for the economy, the biggest near-term challenge for the Fed will be how to keep the momentum going by upping the ante even higher their next meeting.</ins></ins>
The big news is that the Fed is now doubling the amount of money it is printing. In addition to its ongoing $40 billion per month of mortgage backed securities (to stimulate housing), it will now buy $45 billion per month of Treasury debt. The latter program replaces Operation Twist, which had used proceeds from the sales of short-term treasuries to finance the purchase of longer yielding paper. The problem is the Fed has already blown through its short-term inventory, so the new buying will be pure balance sheet expansion.
To cloak these shockingly accommodative moves in the garb of moderation, the Fed announced that future policy decisions will be put on automatic pilot by pegging liquidity withdrawal to two sets of economic data. By committing to tightening policy if either unemployment falls below 6.5% or if inflation goes higher than 2.5%, Bernanke is likely looking to silence fears that the Fed will stay too loose for too long. While these statistical benchmarks would be too accommodative even if they were rigidly enforced, the goalposts have been specifically designed to be completely movable, and hence essentially meaningless.
Bernanke said that in order to identify signs of true economic health, the Fed will discount unemployment declines that result from diminishing labor participation rates. It is widely known that a good portion of unemployment declines since 2009 have resulted from the many millions of formerly employed Americans who have dropped out of the workforce. But like many other economists, Bernanke failed to identify where he thinks "real" employment is now after factoring out these workers. So how far down will the unemployment number have to drift before the Fed's triggering mechanism is tripped? No one knows, and that is exactly how the Fed wants it.
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You can build a house of cards but first good strong wind will blow it down. In this case the destruction will be global. Think how many great and drastic changes the "right people" can bring about should that occur!
EXACTLY!!!-Tyr

[Kathianne]

Not happening, seems the 'will' was heard, at least for now:

http://www.latimes.com/business/money/la-fi-mo-trillion-coin-20130112,0,7251551.story


Treasury says 'no' to trillion-dollar coinWASHINGTON -- The trillion-dollar coin isn't going to save the day.


The U.S. Treasury says it won't mint the coin as a way of escaping the debt-ceiling crisis. The Federal Reserve (http://www.latimes.com/topic/economy-business-finance/economy/economic-policy/federal-reserve-ORGOV000035.topic) also nixed the plan.


Even though the platinum coin idea started as something of a joke, it caught on in the blogosphere and gained some notable supporters such as Nobel Prize (http://www.latimes.com/topic/arts-culture/nobel-prize-awards-8006070.topic)-winning economist Paul Krugman.


The plan envisioned the administration minting a platinum coin, then depositing it at the Fed to draw the trillion bucks to pay government bills should Congress (http://www.latimes.com/topic/politics/government/u.s.-congress-ORGOV0000131.topic) fail to raise the debt ceiling. The nation is quickly coming up against its debt limit of $16.4 trillion.


But on Saturday, a Treasury spokesman said, "Neither the Treasury Department (http://www.latimes.com/topic/economy-business-finance/economy/u.s.-department-of-the-treasury-ORGOV000051.topic) 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."


With the platinum coin off the table, the White House chimed in Saturday, urging Congress to get to work.

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