Beta

Slashdot: News for Nerds

×

Welcome to the Slashdot Beta site -- learn more here. Use the link in the footer or click here to return to the Classic version of Slashdot.

Thank you!

Before you choose to head back to the Classic look of the site, we'd appreciate it if you share your thoughts on the Beta; your feedback is what drives our ongoing development.

Beta is different and we value you taking the time to try it out. Please take a look at the changes we've made in Beta and  learn more about it. Thanks for reading, and for making the site better!

Seigniorage Hack to Prevent Debt Limit Crisis

UltraOne (79272) writes | more than 2 years ago

United States 4

UltraOne (79272) writes "With the US Senate voting to table the Boehner debt limit bill, the US is only a few days away from running out of cash to pay for all its obligations. Slate reported on a fascinating legal hack, described by blogger 'bewulf' back in January 2011. Seigniorage is the extra value added when government mints a coin with a face value greater than the value of the precious metal contained in the coin. The statute governing the minting of coins contains a section (31 USC 3112(k) ) that authorizes the Secretary of the Treasury to mint and issue platinum coins in any denomination or quantity. To keep the government from running out of money, Timothy Geithner could order 5 One Trillion Dollar platinum coins struck and deposited at the Federal Reserve. The money could then be used to fund Federal Government operations (blog post contains legal details)."
Link to Original Source

cancel ×

4 comments

Inflation (1)

Spazmania (174582) | more than 2 years ago | (#36930472)

Problem is, a country's currency is just like a company's stock. Dilute the currency faster than the economy grows and the value of the currency (and thus what can be bought with it) generally falls.

You think making a late payment would scare foreign investors in US treasuries? See what devaluing the currency will do for foreign investors not just of US treasuries but -all- public and private investments managed in US dollars.

Mint some trillion dollar coins. Cute. But far more devastating to our economy than anything currently on the table.

Where else you going to go? There is NO plan B.. (1)

WittyName (615844) | more than 2 years ago | (#36933406)

Euro bonds? problems there.
Japan? not good.
Corporate? well, that is tbills and some extra.
Stocks, well, volatile due to all the catastrophes

Gold? record highs, can not eat it..

There is NO credible plan b

Re:Where else you going to go? There is NO plan B. (1)

Spazmania (174582) | more than 2 years ago | (#36937212)

Plan B is don't spend money you don't have. The Federal government has enough money under the existing debt ceiling to make its debt payments, make payroll, keep the social security checks coming and cover operational national security issues. When push comes to shove, everything else is optional.

More gimmicks (1)

schwit1 (797399) | more than 2 years ago | (#36930478)

We have to stop spending money we don't have. Either we do it ourselves or it will be imposed upon us by those that refuse to loan us cheap money.

Check for New Comments
Slashdot Account

Need an Account?

Forgot your password?

Don't worry, we never post anything without your permission.

Submission Text Formatting Tips

We support a small subset of HTML, namely these tags:

  • b
  • i
  • p
  • br
  • a
  • ol
  • ul
  • li
  • dl
  • dt
  • dd
  • em
  • strong
  • tt
  • blockquote
  • div
  • quote
  • ecode

"ecode" can be used for code snippets, for example:

<ecode>    while(1) { do_something(); } </ecode>
Create a Slashdot Account

Loading...