Avoid debt ceiling with $1 trillion coin?
Congress and the president face an impasses on raising the debt ceiling -- and this is one way out, some say
Roger Showley, U-T SAN DIEGO
Friday, January 11, 2013
Kelly Cunningham, National University System
A vivid example for the fallacy of fiat money - unless containing enough platinum to equal face value (one ginormous coin), it is equivalent to printing money out of thin air, colossally inflationary, destroys the value of the dollar and any confidence of the U.S. ever responsibly paying off debt. Talk about minting “magic” coins demonstrates how dysfunctional political discourse continues to be. The president is right to say the debt ceiling is reached because Congress passes laws compelling the executive to spend more than what is taken in, while Congress says the president’s solution of soaking the rich doesn’t begin to close spending gaps.