Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
When I first heard about the idea of minting a $1 trillion platinum debt coin my first reaction was to think this was a joke. Maybe someone with more of an economics background could explain to me how this could actually be the answer to our debt problems.
Long explanation short:
It would blow up world's economy, causing huge inflation in the US and damaging all trust world's banking system have in the US (just to remind you, the United States are still considered to be the most trustworthy borrower in the world). Moreover, the US lenders (i.e. China, Japan, Arab countries and Europe) wouldn't be happy about loosing their own money just in a second. Not to mention the Americans themselves would loose lifetime savings.
One single trillion dollar coin would more than double the amount of US currency in circulation, which is currently $863-billion. Which, presumably, would decrease the buying power of all US currency by half.
Unless the Federal Reserve withdrew and retired all the physical money in circulation, and replaced it with virtual money, like food stamps on EBT cards, and credited everyone with an exchange share of the trillion. Which would require that everyone use plastic to spend or access their "money". It wouldn't even require carrying the plastic card. The supermarket could scan your iris to access your balance.
Last edited by jtur88; 01-22-2013 at 02:33 PM..
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
