So the old ‘one trillion-dollar coin’ idea is doing the rounds again.
In case you hadn’t heard, this is the idea of minting a one-off ‘US$1 trillion’ coin.
This coin would then be used to pay down US Government debt and avoid defaulting on their loans as they approach the imminent debt ceiling.
If that sounds nuts, that’s because it is.
But it’s perfectly legal.
You see, it takes advantage of a loophole that allows sitting US presidents to issue commemorative coins at their sole discretion.
Usually, these are collectable coins worth $10 or $20 to mark a special occasion or notable person.
But nothing in the rules says what the maximum value of these commemorative coins can be.
Anyway, part of me hopes they go for it.
It’ll expose the sham that our current monetary system is once and for all.
Think about it…
You slave away for 40-plus years to save what you can, make sacrifices, and try to build wealth for your retirement.
Meanwhile, these jokers can issue virtually unlimited amounts of money at will to benefit whoever they want.
What a con!
This time around, the trillion-dollar coin idea was floated by Nobel Prize economist Paul Krugman.
You know the one.
He’s that guy who said back in the 90s that the internet would have no more impact than the fax machine.
Anyway, he explained why this blatant money printing wouldn’t cause more inflation:
These sleight of hand bookkeeping tricks would even make a shonky backstreet accountant blush.
And they call Bitcoin [BTC] ‘make-believe’ money!
Anyway, the reason that such ‘crazy’ ideas are back in the public arena is the continuing US banking crisis and the fast-approaching government debt ceiling.
Simply put, the powers that be need a new way to create money from thin air. Or, more accurately, a new way to pull the wool over our collective eyes.