Follow @PoliticsIE
 
 
 
Page 1 of 15 1234511 ... LastLast
Results 1 to 10 of 145

Thread: Paul Krugman bristles at mockery of 'trillion dollar coin' idea to raise debt ceiling

  1. #1
    Politics.ie Member Skyrocket's Avatar
    Join Date
    Jun 2010
    Posts
    3,889
    Mentioned
    0 Post(s)

    Default Paul Krugman bristles at mockery of 'trillion dollar coin' idea to raise debt ceiling

    In the run-up to the August 2011 controversy about the raising of the debt ceiling, which requires congressional approval and was initially opposed by Republicans (who control the House of Representatives) who demanded more spending cuts, Yale Law Professor Jack Balkin proposed a novel solution. He claimed that there was a loophole in the law that would allow the Treasury to issue two $1 trillion platinum 'commemorative' coins which would then be deposited with Federal Reserve who would then deposit funds with the Treasury in return, thereby bypassing the legal requirement of Congress to control raising the debt ceiling.

    With another executive fight with congressional Republicans looming over the debt ceiling in March, the 'trillion dollar coin' proposal has gained traction among some commentators, the most prominent being the left-wing Nobel Prize winning economist and New York Times columnist Paul Krugman:

    Be Ready To Mint That Coin - NYTimes.com

    The idea and Krugman's endorsement has been subject to ridicule from commentators on both sides of the political divide, but Krugman took particular offense to a comedy skit on Jon Stewart's 'The Daily Show' that mocked his endorsement of the 'trillion dollar coin':

    Krugman, Stewart in trillion-dollar coin tiff - POLITICO.com (includes video).
    Defend the 8th Amendment against attack by those seeking to introduce taxpayer-funded abortion on demand in Ireland. http://prolifecampaign.ie/

  2. #2
    Politics.ie Member Shpake's Avatar
    Join Date
    Oct 2012
    Location
    Dublin-Male-Hetero-ABFF but worried about FGLab
    Posts
    5,229
    Mentioned
    0 Post(s)

    Default

    Some simple questions:
    will the amount of platinum in the commemorative coins equal (at least approximately on the date of minting) the value of the coin?
    If so, who is going to pay for all the platinum? it's not paper you know
    If not, I don't think the markets will be fooled, it's money printing without corresponding wealth creation and that tends to be inflationary

  3. #3
    Politics.ie Member Spanner Island's Avatar
    Join Date
    Feb 2011
    Posts
    23,371
    Mentioned
    0 Post(s)

    Default

    I heard about this trillion dollar coin idea a couple of weeks back and I thought the person who told me about it had either gotten it wrong or was losing their marbles...

    I will have to apologise to that person.

    The global financial system seems increasingly bizarre and to be built more on fairy tales and bullsh!t than it is on products and services that are of any real value.

    Absolute madness...

  4. #4
    Politics.ie Member
    Join Date
    Feb 2009
    Posts
    8,109
    Mentioned
    0 Post(s)

    Default

    don't let Mr Burns deliver them

  5. #5
    Dylan2010
    Guest

    Default

    Trust Krugman to endorse the idea, anything to keep the party going. Might as well pass a law saying that all americans can add 3 zeros to all the notes they have.

  6. #6
    Dylan2010
    Guest

    Default

    I love Stewart's retort

    Stewart on Monday night responded to Krugman’s comments, saying, “First of all, I’m pretty sure that is my brand.”

    “And second of all, if somebody is ruining their brand with a trillion-dollar coin idea, I don’t think it’s the non-economist,” he said.

  7. #7
    Politics.ie Member
    Join Date
    Sep 2012
    Posts
    26,763
    Mentioned
    0 Post(s)

    Default

    I want thme to do it and then for some entry level Fed clerk to stick it his pocket and walk out the door.

    Wouldn't that be a great news story. The Federal Reserve loses trillion dollar coin.

  8. #8
    Politics.ie Member
    Join Date
    Feb 2004
    Posts
    15,618
    Mentioned
    0 Post(s)

    Default

    Krugman, King of the Money Fairy believers.

    Quote Originally Posted by Krugman
    A few months ago the vast majority of business economists mocked concerns about a ''double dip,'' a second leg to the downturn. But there were a few dogged iconoclasts out there, most notably Stephen Roach at Morgan Stanley. As I've repeatedly said in this column, the arguments of the double-dippers made a lot of sense. And their story now looks more plausible than ever.

    The basic point is that the recession of 2001 wasn't a typical postwar slump, brought on when an inflation-fighting Fed raises interest rates and easily ended by a snapback in housing and consumer spending when the Fed brings rates back down again. This was a prewar-style recession, a morning after brought on by irrational exuberance. To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble.
    "Always do right. This will gratify some people and astonish the rest." Mark Twain

    “When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes. Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.” Napoléon Bonaparte

  9. #9
    Politics.ie Member
    Join Date
    Sep 2012
    Location
    Cylon-occupied Caprica
    Posts
    3,658
    Mentioned
    0 Post(s)

    Default

    Quote Originally Posted by Skyrocket View Post
    In the run-up to the August 2011 controversy about the raising of the debt ceiling, which requires congressional approval and was initially opposed by Republicans (who control the House of Representatives) who demanded more spending cuts, Yale Law Professor Jack Balkin proposed a novel solution. He claimed that there was a loophole in the law that would allow the Treasury to issue two $1 trillion platinum 'commemorative' coins which would then be deposited with Federal Reserve who would then deposit funds with the Treasury in return, thereby bypassing the legal requirement of Congress to control raising the debt ceiling.
    So an economist who has to try desperately to resist masturbating in public any time he hears the words "Democrats" or "Barack Obama" is having a spat with the Democrats/Obama's biggest media mouthpiece.....

    It's just delicious how Demmycrats keep fighting with each other.

    Well done to Stewart for ridiculing Krugmann's voodoo economics.

  10. #10
    Politics.ie Member
    Join Date
    Sep 2012
    Location
    Cylon-occupied Caprica
    Posts
    3,658
    Mentioned
    0 Post(s)

    Default

    My favourite Krugmann thingy was how he denounced Obama's fiscal stimulus as being tiny and not going far enough when it was passed into law, but has spent every day since hailing it as the greatest decision ever made, helped us avoid a second Great Depression, etc etc

Page 1 of 15 1234511 ... LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •