Would anyone notice another 20 trillion? Surely the fake metal money will cancel out the fake paper money and we will be left with a clean slate.
The trillion dollar platinum coin sounds like a joke... There was a trillion dollar banknote in a Simpsons episode... funny! And Zimbabwe already tried this - but with paper banknotes. I think this is a prelude to hyperinflation!
They were discussing this on the afternoon show on Triple M radio Sydney today. They even used a soundbite from that Simpsons episode. They lampooned the idea, quite rightly. Not so serious a commentary but at least the issue is peeking into the mainstream.
Despite Paul Krugman's support for this proposal, I'm actually coming around and starting to like it. Why? Because what it basically amounts to is the people of America giving a big "fcuk you" to the Federal Reserve. Think about it, the people (or, the people's representative, i.e. the Government) can force the Fed to hand over $1 Trillion dollars cash in exchange for a trinket worth maybe sixteen hundred bucks. Sure, its only funny money, but ALL money is funny money anyway, and if you can trade a trinket for 1 Trillion dollars of funny money instead of trading a generation of debt-servitude for it, I can see how that appeals.
one way or another they need to get rid of any "debt ceiling" that's a notion from a bygone era. nowadays, debt is like oxygen.
I like the turtle you bit (because the debt is immoral and should be defaulted on) but the need to pay interest and make promises that they'll pay it back etc at least keeps the Govt more fiscally resonsible than if they could print cash at will. [Even though it's not succeeding very well at the moment one can imagine that the hyperinflationary crack-up boom would have already happened if not for the debts.]
Seems the idea is fairly mainstream now... Source: http://boingboing.net/2013/01/09/tom-the-dancing-bug-and-a-pla.html
I guess this is rather a joke, a theory... someone thought about this, but I think it's rather unreal. Anyway, it's a sign that they're about to do something. One thing they could do is to print new dollars, devalue the old currency. There's a new 100 $ bill. They could have simply declared: 100 $ new = 10.000 $ old Europe has seen such type of inflation in the past. Face value will remain the same, just the real value will differ. This is just an idea that I had.
^ an idea you had? What, when you were studying this page? http://en.wikipedia.org/wiki/Hyperinflation
No, doggie, I was thinking about it... No need to study, I'm an economist with multiple degrees The don't have to write higher face value, they just have to create new, more expensive money with the same numbers on them. So 100 or 1000 new currency buys a single new currency. Generally this is not how hyperinflation works. Not in Weimar Germany, nor Hungary (which holds the record in hyperinflation rate), nor in Zimbabwe... They write higher face values during hyperinflation. Not always, though... :/ So we can still wake up with hyperinflation and same face value - but different real value
Maybe you should check that link after all... Look at Greece, Hungary, Yugoslavia and you will see what I mean.
