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View Diary: Ezra Is Terrified Because of His Framing (35 comments)

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  •  We accept monopoly money now (0+ / 0-)

    It's all been fiat since 1971. Don't you know that; or have you been asleep since then.

    In any case, why do you think it will make a laughing stock for Obama to have $60 T in the Treasury and never have to issue debt to deficit spend again? What's funny about that? No one will be laughing when he pays back $6.7 T the first week to the Fed and the Federal agencies holding debt.

    •  Uh huh, sure. (0+ / 0-)

      Minting a coin of any amount backed by nothing but air will not pay a single debt, especially a coin of such a ridiculously high amount.  How anyone can think otherwise is beyond perplexing.  Do you really think other countries would recognize such a thing as having any value whatsoever?  If so, give at least one example of when this was done successfully in the past.

      "Two things are infinite: the universe and human stupidity, and I am not sure about the universe." -- Albert Einstein

      by Neuroptimalian on Thu Sep 19, 2013 at 10:17:08 PM PDT

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      •  Lincoln's Greenbacks and (0+ / 0-)

        Money printing in the US during WW II. There were bonds sold. But only after we used money printing, and even after we began to sell bonds to drain off excess purchasing powers there wasn't a one-one match between bonds and deficit spending.

        Also, please note, I said that it's all been fiat since 1971. That means all our money has been backed by nothing other than thin air and the capacity of our economy to produce goods and services. In the United States that's all there is -- money backed by nothing. Grow-up! Face it! That's what we've got.

        Now, I think there are three main options about the debt. 1) Pay it off by running surpluses and ruin the economy because there will be no money for people to save and no excess of imports over exports for Americans to benefit from; 2) Pay it off with fiat money like PCs; or 3) let it ride, increasing somewhat each year and never worry about it. So, what is it you want to do?

        •  When our GDP reaches something ... (0+ / 0-)

          in the neighborhood of an EXTRA 60T, then we can talk about minting a coin with such a denomination.  

          "Two things are infinite: the universe and human stupidity, and I am not sure about the universe." -- Albert Einstein

          by Neuroptimalian on Fri Sep 20, 2013 at 10:24:02 AM PDT

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