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Della

Poke A Hole In This Idea If You Can, Cynics!

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Sovereign governments such as the United States can print new money. However, there’s a statutory limit to the amount of paper currency that can be in circulation at any one time. Ironically, there’s no similar limit on the amount of coinage. A little-known statute gives the secretary of the Treasury the authority to issue platinum coins in any denomination. So some commentators have suggested that the Treasury create two $1 trillion coins, deposit them in its account in the Federal Reserve and write checks on the proceeds.

On CNN:

One of the people in the comments section in one of the articles about this sensible idea said this wouldn't be inflationary, so I guess it wouldn't be.

Edited by Della

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So minting a couple of trillion out of thin air is not inflationary in the way that printing it would be. I see.

Well yes of course, just as Quantatative Easing is not inflationionary because it is all ones and zeros and no actual printing happens...they have Quantatative Eased $2.325 trillion into existance. Minting is probably faster than QE so they can get the good effects of defecit reduction by minting trillions of dollars without it taking years like QE, or causing inflation like printing money would.

Edited by Della

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I have been considering issuing my own currency for a while now.

AFIK it is not illegal, as long as it does not imitate exisiting currencies, but it would not be legal tender.

I depends on people's faith in the issuer (me) I guess.

Am I more reliable and honest than a bank? Probably.

I'm not talking about cheques, which are redeemable against sterling. Mine would be based on a standard. Gold. Or perhaps chocolate, or gravel.

But what should I call my new currency...?

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I have been considering issuing my own currency for a while now.

AFIK it is not illegal, as long as it does not imitate exisiting currencies, but it would not be legal tender.

I depends on people's faith in the issuer (me) I guess.

Am I more reliable and honest than a bank? Probably.

I'm not talking about cheques, which are redeemable against sterling. Mine would be based on a standard. Gold. Or perhaps chocolate, or gravel.

But what should I call my new currency...?

Sensible idea. Base it on gravel and call it "Rock Solid", a name like that would immediatly inspire investor confidence.

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Sensible idea. Base it on gravel and call it "Rock Solid", a name like that would immediatly inspire investor confidence.

Perhaps if I got the rock from the north of England I could inspire confidence by calling it N.....

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Sensible idea. Base it on gravel and call it "Rock Solid", a name like that would immediatly inspire investor confidence.

Or Northern Rock. The trademark on that has expired.

edit: happy renting beat me.

Edited by okaycuckoo

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Read somewhere that the Fed holds over a trillion US bonds and could simply tear them up if needs be,

All the money they issued to buy them is still "in the wild"

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Read somewhere that the Fed holds over a trillion US bonds and could simply tear them up if needs be,

The Fed is the biggest holder of Treasury bonds, not China as is commonly believed.

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If it contains a $1tr of platinum, it might possible not be inflationary.

If they did make a couple of $1 trillion platinum coins, after the fact it would only require a few grams of base metal. It would be a wonderful self fulflilling valuation.

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I have been considering issuing my own currency for a while now.

AFIK it is not illegal, as long as it does not imitate exisiting currencies, but it would not be legal tender.

I depends on people's faith in the issuer (me) I guess.

Am I more reliable and honest than a bank? Probably.

I'm not talking about cheques, which are redeemable against sterling. Mine would be based on a standard. Gold. Or perhaps chocolate, or gravel.

But what should I call my new currency...?

How about 'bitcoin' Bitcon:Wikipedia ... ah wait that's been tried. It failed. Someone found a hole in the security for one of the trading houses and millions of real (?????) dollars in 'value' disappeared into thin air almost instantaneously ... in the same way any kind of currency based on debt-driven musical chairs and a confidence trick would ...

Aidanapword

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why stop at 2 trillion ?

zimbabwe-100-trillion-dollar-bill-obverse.jpg

Don't be silly, that's printed money, printing money is inflationary, everyone knows that! Now this German billion mark coin is worth 1,000,000,000,000 marks, what we would call a trillion marks, if only the germans had stuck to minting money, rather that printing and minting the hyperinflation they had would be unpossible.

westphalia_billion_mark_rev.jpg

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220px-76-926reverse.jpg

I see your half penny and raise you a quarter farthing. One old penny was worth 1/240th of a pound sterling, a farthing a 1/4 of a penny and a quarter farthing 1/16th of a penny or 1/3840th of a pound sterling.

qf52.jpg

In modern money its purchasing power is equivilent to 2.2p using the retail price index or 19.8p using average earnings comparisons.

Edited by Della

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One of the people in the comments section in one of the articles about this sensible idea said this wouldn't be inflationary, so I guess it wouldn't be.

Right.. if it works so well maybe RoyalMint should also mint a few trillion pounds coin and just hand them over to our pension fund to pay off all debt?

(Pensioner isn't going to be happy).

Any money created without the relevant goods/productivity to support it is inflationary, regardless of form (coins/bills/bonds etc)

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  • 336 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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