Welcome to the United States of Zimbabica. Why do I say that, you ask? Well Zimbabwe went through a massive period of inflation to the point where people in restaurants would pre-pay for their meals because if they waited until the meal was over, the price would go up as the inflation increased hourly. Yes, I mean that literally, this inflation was so out of hand that Zimbabwe was printing 100 Trillion dollar notes with the equivalent exchange of about $5 Yankee dollars as a good friend of mine would say.
Why do we resemble Zimbabwe? We don’t yet, but if we follow the asinine ideas of some damn politician we could be leaping off that cliff much sooner than we would otherwise. The powers that be have latched onto another gimmick to get around the debt ceiling that keeps rising, crippling this country. Seems that some pundit or another found a loophole in the U.S. code that would allow the treasury to mint a platinum coin in any denomination it chose. Wow. The law was intended to be there for the purpose of minting coins of various denominations in platinum for collectors and the numismatic market, but now politicians would use this little loophole to their own advantage.
It is as if a four watt lightbulb went off in their collective heads and they said, I know what we can do, we can mint a trillion-dollar coin and put the proceeds into the Fed and call the debt ceiling good because we deposited the money. This is the kind of solution that is lauded by the ignorant and embraced by the stupid. Hell, the white house website has a petition that over 4500 people have signed already, if that doesn’t prove that people don’t understand economics nothing will. I mean look, even Paul Krugman the famous, wonderful, stupendous, and glorious economist in all his asininity called the idea “one that’s silly but benign”
Benign, really, I think even considering the idea will weaken the dollar. Once you print a trillion-dollar coin with a half ounce of platinum or a whole ounce or whatever, what is stopping you from printing oh say twenty of them. Then you deposit them in the fed and boom, America has a three and a half trillion-dollar surplus, the debt is wiped out America is saved. Yes, what really just happened is that you reneged on all of our debt and destroyed not only the faith, but the actual wealth stored in the dollar.
Do you think anyone would take a dollar bill again knowing the government gave itself licence to produce whatever it felt like as long as it used platinum. They would have to go into immediate production of trillion-dollar coins just to keep up with the rate of inflation. Oh, need a loaf of bread, that will be five hundred million dollars today, a billion in a week.
What kind of short-sighted, foolish, and ridiculous people come up with such asinine ideas….oh yeah, politicians.