Gregory J. Krieg
January 4, 2013
With President Obama having kicked off debt ceiling negotiations by vowing not to negotiate over the debt ceiling, a new option for paying off the nationâ€™s considerable tab is gaining momentum with cheeky fiscal and monetary wonks.
It goes like this: Should Congress fail to extend the U.S. debt limit â€” reached again on Dec. 31 â€” the president could ask the Treasury to begin printing trillion dollar coins (in a process explained mostly seriously by Jim Pethokoukis on his American Enterprise Institute blog), a number of which could then be put toward fulfilling debt obligations in the event new legislation stalls in Congress.
While there are laws in place to regulate how much paper, gold, silver or copper currency can be circulated by the government, there is nothing so clearly stated when it comes to platinum. That door open, the Treasury could have the U.S. Mint melt and mold a few trillion dollars of it, then ship the goods over to the Federal Reserve for safekeeping until the time comes to pay the bills.
While raising the US debt ceiling has not gotten as much attention â€” yet â€” as the risk of falling off the fiscal cliff, it soon will. The limit will likely be hit by year end. And if Congress fails to raise the borrowing cap, the Treasury would likely run out of money-management options to avoid a default some time in the February.
So what to do? Analyst Chris Krueger at Guggenheim Securitiesâ€™s Washington Research Group outlines four options. Pay particular attention #4:
1. Traditional Raise. This would involve a straight raise in the debt ceiling without any Congressional strings or new/alternative mechanisms.Â By using â€œback of the envelope accountingâ€ the USA burns approximately $100B in debt per month.
2.Â Raise by Congressional Disapproval.Â This is the system engineered last summer.Â Essentially, the Congress passes a motion of disapproval to raise the debt ceiling, Obama vetoes, and the Congress fails to override the veto.Â Assuming there is not enough votes to override the veto (there are not), the debt ceiling is raised.
Something once again not written by aj, but an article as ALL his others that researched and found and then put out by infowars. Wow how do you suppose they get their information it seems those who cant or dont put two and two together cant figure that out.
It seems they think he sits there and just makes the stuff up out of his head. Which isn't the case at all.
It is no different than you, or anybody else who goes sand googles something and to you or, anybody thinks that is a good news source so you take it use the information and put your article or story out there which ever it might be.
Since most dont take into consideration that Amber Lyons worked for CNN and is plainly telling the public how they restricted her articles, what would anyone ever think that these paid news channles would ever, ever lie. THey wouldn't do that would they.
So either way it goes whose proof is better than those who end up coming out right.
It's your choice your news, you take it where you want to that is why we have the freedom of choice or at least we use to.
So lets see if this happens, we're are out of money but they just keep printing away, and printing away raising the ceiling and rasing the ceiling. Guess we can all see where it gets us in the end.