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  • How the platinum coin could work (or backfire)

    From cnn.com

    The unusual move of minting a large platinum coin might shock politicians into cleaning up the fiscal mess. But the rest of the world may see it as inflationary. By Mohamed El-Erian FORTUNE -- In just a few weeks, the "platinum coin" option has gone from a wacky idea to becoming the subject of serious discussion among academics, market participants and, yes, some politicians. In itself, this evolution says a lot about the state of U.S. Congressional dysfunction, especially when it comes to economic governance. It also raises some intriguing possibilities. The platinum coin option is, according to many experts, a ... (full story)

DROP THIS FECKING IDEA!!!!! The inflation would be astronomical.
Perhaps the bigger question to ask is...

How did the U.S come to this state?
Quoting JollyBean
Perhaps the bigger question to ask is...

How did the U.S come to this state?
To the coin idea? I have no clue. Perhaps, the government is trying to place that piece of chewing gum on the dam's leak. To the deficit? That is the obvious part.
It sounds like a perfectly good solution. Consider it like a 10-year bond. The US govt. creates a coin out of a large lump of platinum, by this time in the next decade the scrap value of the coin exceeds $1trn and everybody is happy!
Carbon-Dioxide: the gas of life!
Quoting Exodus
It sounds like a perfectly good solution. Consider it like a 10-year bond. The US govt. creates a coin out of a large lump of platinum, by this time in the next decade the scrap value of the coin exceeds $1trn and everybody is happy!
I don't think it works like that!
platinum? gold new lows
the only real problem with a trillion dollar coin is if someone steals it.
realize the universe is one thing, and attach it to your body
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I have got a mortgage. So let me print a few thousands of special banknotes on my home printer. I promise to make them really nice in gold and platinum colors and I will value each at $100. Please believe me my special banknotes will be treated as art in 10 years time and each will easily exceed $100.

Can I use my banknotes to reduce my debt? So why government is allowed to do that?
Quoting Guest
I have got a mortgage. So let me print a few thousands of special banknotes on my home printer. I promise to make them really nice in gold and platinum colors and I will value each at $100. Please believe me my special banknotes will be treated as art in 10 years time and each will easily exceed $100.

Can I use my banknotes to reduce my debt? So why government is allowed to do that?
Why waste your time printing $100 bills when you can print $200 bills with George WTF Bush's head on the reverse! (or is it obverse ?)
Carbon-Dioxide: the gas of life!
What I find interesting is platinum has increased from about $1560 to $1620 since this idea hit the wires. The reality is dollars are backed by oil.
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  • Story Stats
  • Posted: Jan 11, 2013 10:45am
  • Submitted by:
     Newsstand
    Category: Fundamental Analysis
    Comments: 10  /  Views: 2,630