US legislators have the idea of shaping a trillion dollar platinum Coin to avoid a state debt crisis-Economics
US legislators have the idea of shaping a trillion dollar platinum Coin to avoid a state debt crisis-Economics
American politicians have loudly talked that the United States is faced with a significant debt crisis and the debt limit puts the country in danger of becoming insolvent. Joe Biden spoke about the debt limit and asked the Republicans to "simply avoid" when making the decision. In the meantime, a number of US bureaucrats have the idea of shaping platinum in the amount of $ 1 trillion, coin to magically with cash.
Tillion dollars Coin of US politicians, which is very observed, says the former director of the US-Münzpragungsanstalt Platinum Coin can be shaped in a few hours
Simply creating new Fiat from nowhere is an extremely popular trend these days, and it seems that many politicians worldwide did not take this into account History of the economies which were destroyed by excessive money supply expansion. In the United States, civil servants have discussed the country's debt and whether America will be in arrears with its debts.
At a press conference in the White House, US President Joe Biden emphasizes : "The increase in the debt border means that we pay what we already owe ... nothing new." Biden says that the Republicans block the need to increase the debt limit, and he asked the party to simply "avoid it so that they do not destroy". [The Country]. “
In the meantime, a number of civil servants and mainstream media Discuss the idea The characteristics of 1 Billion dollar platinum coin to save the economy from the disaster. It is not a joke and is strongly taken into account by US politicians who are fans of heterodox macroeconomic concepts such as Modern Monetary Theory (MMT).
In addition, thanks to interesting legislation - without the consent of the congress - the executive can shape coins, as long as the currency is made of platinum. In addition, Axios reporter Felix Salmon explains that Janet Yellen, even if she does not tell the public, "could prove the MINT director to take these steps or two in advance". Salmon added:At this point, A Coin could be shaped in the West Point coin in minutes. Even if it had to be physically deposited with the New York Fed, this is only a short helicopter flight.
yellen the coin idea calls a "gimmick", MMT advocate Rohan Gray says that the "debt ceiling itself can be regarded as a large, poorly conceived accounting gimmick"
The unique law that was developed to create such a coin 20 years ago and is intended to support the production of commemorative coins. A financial debt crisis is not mentioned in the rules.
The law expressly states that Janet Yellen, the Secretary of the US Ministry of Finance, shape and spend platinum assembly coins and platinum coins in accordance with such specifications, designs, varieties, quantities, units and inscriptions, as the secretary prescribe from time at the discretion of the secretary. "
While Yellen rejected the idea together with a group of Democrats on Tuesday, Philip Diehl, former director of United States Mint, says that the decision could still be made. The trillion dollar platinum Coin could "be shaped within hours after the decision of the finance minister", noted Diehl.
yellen described the idea as "gimmick" and said CNBC reporters that "the world must point to it can make America to debts ”. The CNBC report quotes the opinion of the MMT supporter Rohan Gray on this matter, who said "Sure it is" a gimmick when he referred to Yellen's statements.
"The fact that (the coin)." The idea of combating a accounting problem with a accounting solution is completely conclusive ... The debt limit itself can be considered a large, poorly designed accounting. "
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