Tag Archive for Platinum Coin

CPEG’s Ron Baiman: President Obama, Please Take Debt Extension off the Table and Refocus Debate on Jobs

Dear President Obama:

Like many Americans I’m nauseated by the current John Boehner/Tea Party willingness to take the entire country hostage and directly harm the lives of millions of people affected by the government shut-down, in an effort to sabotage health care provision for millions of other people who are finally able to get health insurance through the Affordable Care Act, and I applaud your refusal to “negotiate” with Boehner and the 30-40 Tea Party Republican Congressman hostage takers.

(Note to John Beohner: if you have become so attached to power that that you cannot risk your job for the good of the country you need to resign.)

But I have two additional action recommendations that I would like you to consider:

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Beowulf’s Brilliant Idea: Take Away the Fed’s and Private Finance’s Exclusive Right to Create Public Money

Written by CPEG’s Ron Baiman

Though Congressional Republicans have apparently backed off of their plan to immediately take the federal government hostage by temporarily extending the federal debt limit, the threat remains.

As many of you probably have heard by now a blogger with the screen name of Beowulf has come up with a unique and apparently perfectly legal method for the Treasury to do an end-run around (questionably legal) Congressional debt limit extortionism.1 Beowulf proposes to take advantage of a 1995 act that apparently gives the U.S. Mint the ability to assign any value to platinum coins that it mints and transfer these coins, or more to the point, their value, to a U.S. Treasury account at the Federal Reserve. The Treasury could then use these funds to pay its bills. Readers will recognize that this is effectively a form of “coin seigniorage,” that is a creation of money by fiat using platinum coins.2 Beowulf proposes that the Treasury mint a few platinum coins and value them at $ 1 trillion dollars each.3

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