Tag Archives: Trillion Dollar Coin

What Does The Trillion Dollar Coin Do?

Posted on December 9, 2012 by Devin Smith | 31 comments

The Trillion Dollar Coin proposal for solving the debt ceiling problem is again experiencing a blogosphere explosion this past week. The precipitating factor may be that people are starting to believe that the Republicans will come to a “fiscal cliff” settlement with the Democrats including very little in entitlement spending; but will then come back, in 2013 with a very tough position on the price they want to agree to raise the debt ceiling to give the Executive operating room for any length of time. Bruce Bartlett had this to say on the issue: Continue reading →

31 Comments

Posted in Joe Firestone

Tagged MMT, Modern Monetary Theory, platinum coin seignorage, PPCS, Proof Platinum Coin Seigniorage, Trillion Dollar Coin

Origin and Early History of Platinum Coin Seigniorage In the Blogosphere

Posted on December 8, 2012 by Devin Smith | 31 comments

By Joe Firestone

[Revised 1/6/2013]

This post records the history of platinum coin seigniorage in the blogosphere through the debt ceiling agreement on August 2, 2011. Its purpose is to correct errors in the record about the history of this idea appearing on mainstream blog posts by Joe Wiesenthal, John Carney, and Brad Plumer, during the past week. The idea of using coin seigniorage, the profits made from minting proof platinum coins, depositing them at the Fed, and receiving electronic credits in return, to remove the need for issuing debt, and so to always stay under the debt ceiling is due to a commenter (and occasional blogger) on economics and politics blogs whose screen name is beowulf (Carlos Mucha). Beowulf’s first comment on Platinum Coin Seigniorage (PCS) was on Brad Delong’s site on July 6, 2010 (h/t Cullen Roche, 01/05/13). But, the first comment of his I noticed on PCS was at New Deal 2.0. Unfortunately, when The Roosevelt Institute redid its New Deal 2.0 site, it wiped out the record of beo’s comment. However, I quoted his ND 2.0 proposal in a post on November 12, 2010 discussing a possible Government shutdown due to the debt ceiling. I cross-posted this at Correntewire too where beowulf commented further on the platinum coin option.

Continue reading →

31 Comments

Posted in Joe Firestone

Tagged beowulf, fiscal cliff, joe firestone, letsgetitdone, MMT, Modern Monetary Theory, platinum coin seignorage, PPCS, Proof Platinum Coin Seigniorage, Trillion Dollar Coin, warren mosler

These Folks are Soooo Clever . . .

Posted on September 26, 2012 by Devin Smith | 87 comments

Last week, Reps. Michael Honda, Keith Ellison, Raul Grijalva, Jan Schakowsky, John Conyers, Barbara Lee and Lynn Woolsey stalwarts of the Congressional Progressive Caucus (CPC) begged for mercy from “the Gang of Eight” in a letter.

Here’s what they said and my commentary on their “loser liberalism.” Continue reading →

87 Comments

Posted in Joe Firestone

Tagged debt issuance, deficit reduction, deficits, fiscal cliff, MMT, modern money theory, national debt, PPCS, Proof Platinum Coin Seigniorage, Ratings Agencies, Trillion Dollar Coin

Alan Grayson’s Right; But He Misses the Larger Point

Posted on September 14, 2012 by Devin Smith | 9 comments

By Joe Firestone

Alan Grayson’s e-mail on Moody’s warning that it might reduce the US’s AAA rating, suggested that Moody’s was either threatening a downgrade because it wants to get the Bush tax cuts for the rich extended, or, alternatively, that “Moody’s is living in what Aristophanes called “Cloud Cuckoo Land.”” He says this because Moody’s is upset about the possibility that the US may go over the so-called “fiscal cliff,” even though if it did, it would theoretically result in $560 Billion of deficit reduction annually, without further legislative changes, and it makes no sense on the surface for a ratings agency to think that the risk of US bond default is greater when the annual deficit is being reduced by $560 B per year, than by some lesser amount, which is likely to happen if Congress doesn’t take us over that “cliff.”

Continue reading →

9 Comments

Posted in Joe Firestone

Tagged 14th Amendment, Alan Grayson, Bill Mitchell, bond vigilantes, debt issuance, deficit reduction, deficits, fiscal cliff, Mike Norman, MMT, modern money theory, Moody's, national debt, PPCS, Proof Platinum Coin Seigniorage, Ratings Agencies, Standard & Poor's, Trillion Dollar Coin

No Plan B?

Posted on September 12, 2012 by Devin Smith | 11 comments

By Joe Firestone

Bob Woodward’s releasing a new book, so we are now seeing articles based on it. A few days back, The Washington Post published the “Inside story of Obama’s struggle to keep Congress from controlling outcome of debt ceiling crisis.” This account is a pretty downbeat one of how our political leaders and President Obama handled the debt ceiling crisis of the summer of 2011. I want to comment on what for me was the most salient point: that during the crisis, the President had no “Plan B” to get around the debt ceiling beyond negotiating a deal with Congress.

Continue reading →