“Two $1 trillion dollar platinum coins”

[CadmiumGreen]

https://www.foxnews.com/politics/tlaib-coronavirus-debit-trillion-coins
 

Tlaib wants to hand out debit cards during coronavirus, mint trillion-dollar coins to cover cost

“Tlaib would take advantage of an obscure provision in federal law that ostensibly allows the Treasury to mint commemorative coins to have the U.S. Mint make "two $1 trillion platinum coins" that would be purchased by the federal reserve "at full face value."”

 

...I reserve comments...😐

[Minimalist]

If that is serious that literally means they are expanding fiat to nationalise metal producers

[kneehow2018]

On 24/03/2020 at 21:30, CadmiumGreen said:

“Tlaib would take advantage of an obscure provision in federal law that ostensibly allows the Treasury to mint commemorative coins to have the U.S. Mint make "two $1 trillion platinum coins" that would be purchased by the federal reserve "at full face value."”

I seem to recall that this was being mulled over during the reign of Obama?

[5huggy]

  the - - - F e R K!!! the world has gone Berzerk! 🤣

[CadmiumGreen]

17 minutes ago, kneehow2018 said:

I seem to recall that this was being mulled over during the reign of Obama?

@kneehow2018, that is correct!!...

“The idea of minting trillion-dollar coins was discussed during the Obama administration when the U.S. faced default on its debt, but was never taken very seriously. It risks inflation, but more significantly, according to its critics, such a gimmick would not be a good look for the U.S. internationally.”

[kneehow2018]

Thanks for confirming @CadmiumGreen LOL! It was so ridiculous ...It stuck in my mind. With all the rumours of non-audit at Fort Knox .. worth a play? But just look at the 10 year and more charts esp. Gold:Platinum ratio...see the spikes when a sale of one can might be used to buy another?? Anyways what do I know - I think like a 5 year old (so I've been told)!

[CadmiumGreen]

3 minutes ago, kneehow2018 said:

Thanks for confirming @CadmiumGreen LOL! It was so ridiculous ...It stuck in my mind. With all the rumours of non-audit at Fort Knox .. worth a play? But just look at the 10 year and more charts esp. Gold:Platinum ratio...see the spikes when a sale of one can might be used to buy another?? Anyways what do I know - I think like a 5 year old (so I've been told)!

Yeah, pretty crazy, it would supposedly “preserve the historical separation between fiscal and monetary policy and avoid financial entanglement between the Treasury and the Federal Reserve which would eventually undermine the independence of the Fed.” Don’t think that is going to be a strong strategy going forward! But true to your point, I believe the Gold to Platinum (and I believe Palladium) price performance had historically been inverted, gold goes up, platinum goes down, and vice versa...not so sure anymore...But you are a h€!! of a lot smarter than me, since I am an...!😁

[kneehow2018]

Sorry it's the Platinum:Gold Ratio 5 year view. There she is... to the left - not for you and me to trade though! Must be one of those "anomalies". And thank you for the opportunity to talk about it ...great post for discussion. Cannot believe the ratio went below 0.5!!!!!

[mr-dead]

Good job its not the Royal Mint doing them, before you know it you would have the originals, the piedort version + multiple privy and variants + the £50 trillion debt to go with them.

[47Ag79Au78Pt]

On 04/04/2020 at 20:05, CadmiumGreen said:

such a gimmick would not be a good look for the U.S. internationally.”

They don’t look too good internationally anyway!

Can someone who understands global economic’s explain what would happen if these coins were minted? Surely that would have some sort of impact on the whole world if you suddenly created $2 trillion from thin air!

Thats a million million, dammit! A pretty large number!

[Thelonerangershorse]

2 hours ago, 47Ag79Au78Pt said:

Can someone who understands global economic’s explain what would happen if these coins were minted? Surely that would have some sort of impact on the whole world if you suddenly created $2 trillion from thin air!

Technically they're not creating it from thin air, they're creating it from platinum.

[47Ag79Au78Pt]

2 hours ago, Thelonerangershorse said:

they're creating it from platinum.

... well, possibly a couple of thousand dollars worth, yes... that’s true. But what about the rest of the $1,999,999,998,000?

[Uksilverstackers]

So why Platinum? They could stamp a $Trillion on any coin.....

Unless they view that Pt may regain its price position above gold. Pt  certainly a lot rarer than gold, but then other ium’s are even more rare.

 

[CadmiumGreen]

3 hours ago, Uksilverstackers said:

So why Platinum? They could stamp a $Trillion on any coin.....

Unless they view that Pt may regain its price position above gold. Pt  certainly a lot rarer than gold, but then other ium’s are even more rare.

 

I know one should never solely source against Wikipedia...but, here is the US Code source for why platinum...

https://en.m.wikipedia.org/wiki/Trillion-dollar_coin

The concept of striking a trillion-dollar coin that would generate one trillion dollars in seigniorage, which would be off-budget, or numismatic profit, which would be on-budget, and be transferred to the Treasury, is based on the authority granted by Section 31 U.S.C. § 5112 of the United States Codefor the Treasury Department to "mint and issue platinum bullion coins" in any denominations the Secretary of the Treasury may choose. Thus, if the Treasury were to mint one-trillion dollar coins, it could deposit such coins at the Federal Reserve's Treasury account instead of issuing new debt.

[Melon]

23 hours ago, CadmiumGreen said:

I know one should never solely source against Wikipedia...but, here is the US Code source for why platinum...

https://en.m.wikipedia.org/wiki/Trillion-dollar_coin

The concept of striking a trillion-dollar coin that would generate one trillion dollars in seigniorage, which would be off-budget, or numismatic profit, which would be on-budget, and be transferred to the Treasury, is based on the authority granted by Section 31 U.S.C. § 5112 of the United States Codefor the Treasury Department to "mint and issue platinum bullion coins" in any denominations the Secretary of the Treasury may choose. Thus, if the Treasury were to mint one-trillion dollar coins, it could deposit such coins at the Federal Reserve's Treasury account instead of issuing new debt.

So hypothetically if the US owed China a trillion dollars, could they just yeet an ounce of platinum over the ocean and laugh? 

[Midasfrog]

On 06/04/2020 at 22:42, mr-dead said:

Good job its not the Royal Mint doing them, before you know it you would have the originals, the piedort version + multiple privy and variants + the £50 trillion debt to go with them.

Not forgetting the cufflinks and piggy bank knockoffs 😅