The insanity of minting a trillion dollar platinum coin

I've resisted writing about this because at first, I thought it was a joke - no one can be serious about the idea of having the Treasury Department mint a trillion dollar coin. The idea is that the treasury secretary can take advantage of a loophole allowing him to mint a platinum coin of any denomination. Print a $1 trillion coin, and -- presto -- there's a $1 trillion in spare capacity under the debt ceiling. Plus, since the coin isn't going to make it into circulation, it should not be inflationary. And further, it still leaves Congress in control of the purse. See video explanation of idea. "It's easy to make sententious remarks to the effect that we shouldn't look for gimmicks, we should sit down like serious people and deal with our problems realistically. That may sound reasonable -- if you've been living in a cave for the past four years. Given the realities of our political situation, and in particular the mixture of ruthlessness and craziness that now characterizes...(Read Full Post)