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Gazi

Will Obama #MintTheCoin?

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A trillion dollar coin, seriously? This may be one of the dumbest things I have ever heard.

What a joke, this country is in debt to itself thanks to social security, welfare, and elderly benefits.

What the hell good is a coin going to do to pay off thy debt?

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http://www.bbc.co.uk/news/magazine-20951417

The coin owes its widely-discussed, though still hypothetical existence to the looming deadline over the debt ceiling - which, as things stand, will prevent the US government issuing new bonds and paying bills, in about two months.

Republicans, who control the US House of Representatives, have pledged to seek spending cuts before consenting to any increase in this limit.

But opponents fear this brinksmanship could threaten the US's credit rating if the country's debt reaches or breaks through this ceiling.

These mostly centre-left critics, including Democratic Congressman Jerrold Nadler, have pointed to a loophole in US law that allows the Treasury Secretary to allocate any value he or she likes to a coin.

They say the Treasury could order the coin to be minted and then deposit it at the Federal Reserve, the US's central bank.

Effectively, the coin is an accounting trick, says Cullen Roche, who blogs about finance and economics at Pragmatic Capitalism.

Its real purpose, however, would be political - to neutralise the threat by Republicans in Congress that federal employees would not be paid, he adds.

"It's a loophole to replace something that's totally insane with something that's slightly less insane," he says.

The campaign has been taken seriously by such eminent people as Nobel prize-winning economist and New York Times columnist Paul Krugman, and Philip Diehl, the former director of the United States Mint. It has also inspired the Twitter hashtag, #MintTheCoin.

But it has attracted opposition, too. Republican Congressman Greg Walden has promised to introduce a bill to ban the government from creating high-value coins to pay its debts.

Walden said he feared the practice would be "very inflationary".

Wray disagrees. "These trillion-dollar coins are held only by the Fed," he says. "There's no increase in the money supply out there."

Supporters of the scheme also say the Federal Reserve could sell bonds, which would withdraw money from circulation.

As yet, however, no such coins exist anywhere. And even those who believe the plan is perfectly feasible concede that it is likely to remain a bargaining chip in the debt-ceiling talks, rather than becoming a reality.

"I think the president will be reluctant to do it because it undermines everyone's credibility," says Roche.

Coin collectors might be advised not to hold their breath about this new denomination turning up on eBay any time soon.

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A trillion dollar coin, seriously? This may be one of the dumbest things I have ever heard.

What a joke, this country is in debt to itself thanks to social security, welfare, and elderly benefits.

What the hell good is a coin going to do to pay off thy debt?

What is the money backed by?

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i don't think he'll do it. he's perfectly willing to capitulate to republican demands as they hold the debt ceiling hostage. that being said, i hope he does; the republican tears would be delicious

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Why not cut out a rectangle from printer paper and handwrite "One-trillion" on it?

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Tell me more about this debt causing Social Security....

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I hope he does... It would be a wonderful FU to the Federal Reserve.

Since the coin will never go into circulation, it will probably have a very limited effect on inflation.

It is a win-win situation. Either the banksters keep their shiny Trillion dollar trinket, or they will just cash it in at a later date when we will not be in economic recession. (at 0% interest as per Constitution).

Either way, poo needs to be done as far as creating jobs and stimulating the economy. I really would like to skip the bipartisan lameduck bullshit, and get down to business. (He can shove his gun agenda though).

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The holder of that coin would instantly be the richest man in the world (on paper) by far.

Probably not as rich as the Rothschilds, but certainly richer than anyone who has reported their wealth to Forbes.

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