The Beginning Of The End
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If Obama Can Just Create A Trillion Dollar Coin, Then Why Do We Have To Pay Taxes?

If Obama Can Just Create A Trillion Dollar Coin, Then Why Do We Have To Pay TaxesIf Barack Obama can "solve" the debt ceiling crisis by printing up some trillion dollar coins, then why does the federal government need our money?  As another debt ceiling showdown approaches, many in the liberal media are suggesting that if Congress does not raise the debt ceiling that Obama should just have the U.S. Treasury create a trillion dollar platinum coin and use it to pay our bills.  It sounds crazy, but many notable voices (including Paul Krugman of the New York Times) are supporting this idea.  But if the federal government has had the power to create trillion dollar coins out of thin air all this time, then why do we have to pay taxes?  Not only that, why do we have a national debt?  If the federal government can just create money whenever it wants, then why does the federal government ever have to borrow it from others?  The U.S. Constitution actually grants Congress the power to "coin money", so why is the Federal Reserve doing it?  Those are some very important questions.  Most Americans don't even realize that the U.S. government never actually needed to borrow a single penny from anyone else.  The U.S. Congress has the authority to create debt-free money whenever it wants to.  Conceivably, the entire federal government could be funded without ever borrowing a single dollar and without ever receiving a single dollar from any of us in taxes.  Just imagine that - a nation without a single penny of national debt, no income tax and no IRS.  What a wonderful world that would be.  Of course there would be other potential dangers under such a system (such as runaway inflation), and those dangers would have to be addressed.  But the truth is that we don't have to have an income tax or 16 trillion dollars of government debt.  We only have those things because we have chosen to have those things.

Sometimes, a crisis can illuminate options that most people had not considered previously.  As another debt ceiling crisis draws closer, many are looking for ways for the U.S. government to be able to continue to pay its bills if Congress does not authorize an increase in the debt ceiling.

If a debt ceiling agreement is not worked out, the U.S. government will soon only be able to pay about half the bills that are coming due after interest payments on the national debt (which will almost certainly be prioritized) are made.

That is why a lot of people on the left are pushing the "trillion dollar coin" alternative.  So how would this work exactly?  The mechanics were recently explained by Jim Pethokoukis on his American Enterprise Institute blog...

There are limits on how much paper money the U.S. can circulate and rules that govern coinage on gold, silver, and copper.  BUT, the Treasury has broad discretion on coins made from platinum.  The theory goes that the U.S. Mint would create a handful of trillion dollar (or more) platinum coins.  The President would then order the coins deposited at the Fed, who would then put the coin(s) in the Treasury who now can pay all their bills and a default is removed from the equation.  The effects on the currency market and inflation are unclear, to say the least.

In my opinion, if anyone in the federal government is going to be creating money out of thin air, it should be the U.S. Congress.  After all, according to Article I, Section 8 of the U.S. Constitution, it is the U.S. Congress that has been granted the authority to "coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures".

But those that are pushing Obama to create a "trillion dollar coin" point to a law that Congress passed that allows the U.S. Treasury to mint platinum coins.  The following is from a recent CNN article...

Normally, the Federal Reserve is charged with issuing currency. But U.S. law, specifically 31 USC § 5112, also grants Treasury permission to "mint and issue platinum bullion coins and proof platinum coins."

This section of law was meant to allow for the printing of commemorative coins and the like. But the Treasury Secretary has the authority to mint these coins in any denomination he or she sees fit.

But it wouldn't quite be that easy.  According to a recent ABC News article, some elements of the coin design would have to be determined by legislation...

The more difficult part comes sometime after the decision is made to coin the platinum and before the Mint gets to work in sculpting the pieces.

At that point, the American people must decide whose face will adorn the trillion dollar trinket. The process to determine the “specs” of the coin, U.S. Mint Public Affairs Specialist Genevieve Billia warns, must be “determined by legislation,” creating the potential for another congressional impasse.

So we would likely end up back at square one.

But if printing up a "trillion dollar coin" does not work out, Paul Krugman of the New York Times has come up with another option...

Don’t like the platinum coin option? Here’s a functionally equivalent alternative: have the Treasury sell pieces of paper labeled “moral obligation coupons”, which declare the intention of the government to redeem these coupons at face value in one year.

It should be clearly stated on the coupons that the government has no, repeat no, legal obligation to pay anything at all; you see, they’re not debt, and therefore don’t count against the debt limit. But that shouldn’t keep them from having substantial market value.

Of course there is a very, very low probability that any of these wild ideas will ever be tried, but this debate has raised some very interesting points.

The truth is that we do not have to have a system where more money is only created when more debt is created.  We could have a system where the federal government directly creates debt-free money that is spent directly into circulation by the federal government.

In fact, this has happened before.

As I have written about previously, during the presidency of JFK a limited number of debt-free United States Notes were issued by the U.S. Treasury and spent by the U.S. government directly into circulation without any new debt being created.  In fact, each bill said "United States Note" right at the top.

Unfortunately, after JFK's presidency no more debt-free United States Notes were ever issued.

But even before JFK, there were times when debt-free United States Notes were being used.  According to Wikipedia, United States Notes were first used during the Civil War....

They were originally issued directly into circulation by the U.S. Treasury to pay expenses incurred by the Union during the American Civil War. Over the next century, the legislation governing these notes was modified many times and numerous versions have been issued by the Treasury.

So why are we using debt-based Federal Reserve Notes today instead of debt-free United States Notes?

If the Federal Reserve did not exist and the U.S. government directly created money instead of borrowing it, it is conceivable that we could have a national debt of $0.00 today instead of $16,432,707,263,449.56.

Which option do you think our children and our grandchildren will wish that we had opted for?

In a system where the government directly created money, it is also conceivable that we could completely do away with the income tax and the IRS completely.  The U.S. once prospered greatly without an income tax, and it could do so again.

And the truth is that our system of taxation is broken beyond repair.  If you doubt this, just read this article.

So what would the downside be to such a system?  Well, of course rampant inflation would be a huge danger.  Allowing Congress to print up money whenever they wanted to would be playing with fire.  That is why it would be imperative for there to be a hard cap on what the federal government could spend.  For example, you could set the cap on spending by the federal government at 20 percent of GDP.  That way we would hopefully never end up looking like the Weimar Republic.

And the current federal debt could be paid down a little at a time using newly created debt-free currency.  This would have to be done slowly to keep inflation under control, but it could be done.

Of course if you wanted to continue to fund the federal government through taxation, there are other options that would still allow you to do away with the income tax.  For example, one of the ways that our founders intended for the federal government to be funded was through tariffs, and we could definitely raise a lot of money that way.  Plus, that would have the added benefit of making American companies much more competitive again and it would reduce the flow of American jobs out of the country.

So am I in favor of having Barack Obama create a trillion dollar coin to get around the debt ceiling crisis?

Most definitely not.  If it does not violate the letter of the Constitution (which I believe it does), it sure does violate the spirit of it.

But if the U.S. Congress decided to shut down the Federal Reserve and the IRS and they decided to abolish the income tax, and instead they started directly issuing debt-free currency directly into circulation, that is something I would very much be in favor of.

Yes, that system would not be perfect either, but it would be far more preferable to what we have today.

So what do you think?  Should we keep our current system of debt-based money, or would a system of debt-free money be better?

Please feel free to post a comment with your opinion below...

Trillion Dollar Coin?

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  • Jose Mexicano

    Gary North recently destroyed Greenbackers. Google it and see your error.

    Sorry pal, but Greenbackerism, is just as much money crank nonsense as trillion dollar coins.

    You can’t get something for nothing, no matter what the cranks say. There is good reason why gold/silver was/is/will be real money.

    • MichaelfromTheEconomicCollapse

      I agree that hard money is better.

      But we cannot convert to hard money until something is done about the $16 trillion dollar national debt and the $55 trillion dollars of total debt in the United States.

      If we locked that in right now at the current price of gold we would be insuring slavery for all future generations of Americans.

      We created this debt mess and we need to clean it up first before we convert to hard money.

      Michael

      • davidmpark

        Agreed. An actual monetary system is preferable to our fiat currency system. The fiat debt must also be dealt with before the fiat system can be transitioned to the monetary system.

      • http://www.facebook.com/WizardKiller Mark Are Reynolds Ⓥ

        “we” created it? THEY created it. Let THEM clean it up.

      • Arrowood

        You have just inadvertently revealed the plan. The oligarchs’ “solution” to the created crisis will be a return to “sound money” as in gold which will do exactly what you said: enslave everyone. The only answer is to abolish the Federal Reserve and take away the power to create money from the private bankers and return it to Congress and the people. Introduction of a debt-free currency will not be inflationary if bank reserves as raised to 100%.

  • Rodster

    Paul Krugman sounds as stupid as Gary2. Are they father and son?

    • Tim

      LOL!

    • 2Gary2

      It would be an honor to have a Noble prize winner as a father.

      • Rodster

        Like father like son, two dummies in the same household. I just pray you two aren’t procreating.

    • JustanOguy

      Lol… No… people like Gary2 just automatically believe anything that idiot says.

  • Patrick

    Seriously!! This is exactly what we should do!!!

  • Mark

    The public would freak out if something from China was priced about 10 times higher. The government let these jobs go to export inflation. In the end most of the jobs are gone as is happening today.

    • Hambone

      I seriously think this is just around the corner. China has us by the throat now. They can decide, at a moment of their choosing, when to pull the rug out from under us.

      When this happens, they own us.

  • markthetruth

    Key Phrase

    “issuing debt-free currency directly into circulation”
    and you forgot.
    Taxes give the government CONTROL.

    And where would the money go the Banks,politicians, unions,

    everywhere except into circulation.

    end up in the same mess anyway!!!

    the end.

    • Wally

      you hit the nail on the head markthetruth, it isn’t about creating money out of thin air, it isn’t about abolishing the IRS, it is however about control.

      This administration has increased the welfare state to levels never seen before:

      From bondage to spiritual faith;
      From spiritual faith to great courage;
      From courage to liberty;
      From liberty to abundance;
      From abundance to complacency;
      From complacency to apathy;
      From apathy to dependence;
      From dependency back into bondage.

      We are back to dependence and very soon bondage.

      • kah

        The voters give control to congress. It is the ignorant voters fault that congress are control freaks.

        • AntiCollectivist

          Negative – voters merely give a veneer of credibility to the State. Voting is just another government program, it’s a big part of their PR department. It’s like voting to change the hood ornament on the car that’s running you over.

          The State wants you to attack your fellow slaves instead of focusing your ire on them. It appears to be working.

  • B T

    Charmin’s value is only a bit under that of the dollar. When the rest of the world decides they are equal or Charmin is a better investment, Game Over!

    • Hambone

      Wow, this is crazy… I was just thinking that soon, our paper currency will have more value for its functionality (ie wiping) than for its purchasing power.

      Are you my long, lost twin?

      • Tim

        Watch out for paper cuts! :-)

  • ken nohe

    When it sounds too good to be true it usually is! It looks more and more that you can’t spend less than twice your income in a democratic system. The problem is not American, it is universal. If you do not, you’re out of a job. Plentiful oil permitted to ignore this reality for quite some time but the era is now over. As the price of oil goes up, our “real” income will crash and democracy will simply become “unaffordable”. There won’t be enough surplus to “oil” the system. If we could get rich with paper, Zimbabwe would have found the secret by now!

  • Noob

    Would trillion dollar coins work, or would it be pointless?

    • Blackhawk

      As davidmpark here has shown the coin is a fantasy, it would be impossible to acquire the platinum necessary for it.
      In fact at this point any solution they come with is only to buy more time, to push the inevitable collapse more in the future and to burden future generations even more.
      The real question now is where all this delay would eventually bring us?

      • davidmpark

        Well, the other problem with a trillion dollar platinum coin at spot value is it would weigh over 40 million pounds!

        Try flipping that!

      • Scott Solinko

        The Government can put any face value they want on the coin. It would be a 1 once coin. Maybe 5 ounces.

  • Prepper

    I have a 100 Trillion Dollar Note from Zimbabwe and you can buy one for $5.00 on ebay as a collectible. In real life, its worthless, which is where the dollar is headed with morally and fiscally bankrupt president and congress. Mark this: America will borrow money till it collapses from debt.

    • Hambone

      True dat. I think if you’re going to invest in something it should be durable assets — things that hold their value because of what they can do.

    • Tim

      I agree, but I think we’ll all be astonished at how long they keep this Ponzi going. It’s to their advantage that the U.S. Dollar is stilled used by foreign nations for trading, though that’s changing. Zimbabwe didn’t have that advantage.

      • wisefool

        I’m already astonished at how long they’ve been able to keep a sinking ship afloat (or delay the inevitable). I’m also astonished at how well they can dupe the public at every angle. AMAZING!

        • http://www.facebook.com/WizardKiller Mark Are Reynolds Ⓥ

          I’ve known about this for 30 years and couldn’t figure out how they did it back then. But now I figured it out. It is called public school.

          • JustanOguy

            They don’t teach anything about it in the private schools either..

    • Mondobeyondo

      Yup. Amazing what 100 trillion Zimbabwe dollars will buy you on eBay.

      You expected a 10,000 square foot mansion? What were you thinking?! It’s barely enough to buy a tin shack there.

    • http://profile.yahoo.com/XFAEMN7TP3UPWEAV7KPNZQ33LM Paul

      Printing money is just another form of taxation. It devalues all the other dollars that exist. It’s an inflation tax. However, I would be happy to have only an inflation tax, if the government would eliminate all the other taxes. Now they are hitting us with every tax they can think of.

    • kah

      Prepper, BORROWING money is the problem. Congress should eliminate the Federal Reserve and stop PRIVATE BANKS from printing money using Fractional Reserve Lending.

      If you had a Million Dollars in your bank account and needed a couple hundred dollars to go out on the town…….Why would you BORROW the money? You would just go to the ATM and get what you need.

      The same is for a FREE COUNTRY. Why would you BORROW when you have the POWER TO CREATE.

      • Masterlock2020

        Why indeed. But considering the Federal Reserve Act was written under cover of darkness, by bankers, for bankers, it’s no surprise.

        What’s tragic is that the American people were, and continue to be, so uninformed that they see no harm in it.

    • http://www.facebook.com/WizardKiller Mark Are Reynolds Ⓥ

      What is the money that they are borrowing? If you can tell me, I’ll have a ton of it delivered to your front yard. It is no more real than a 100 trillion dollar note from Zimbabwe.

    • JustanOguy

      I’ve got a stack of $5 million+ deutsche marks from the Weimar Republic also..

      Found them stashed in hidden drawers of some antique furniture I bought in Germany.

      Pretty paper..

      People just don’t get it…

  • Syrin

    Stop using logic. It has no place in realm of liberals. PRAVDA is openly mocking the leftist global frauders now, and using actaul science to do so. Pravda and Al Jazeera have more credibility than the open enemy of the US, the domestic media. They have brainwashed and zombified citizens to the point they become little more than GARY. GIMME MORE OF YOUR STUFF!! That’s all they know, then they create monopoly money and tell us it’s all good.

    Here are some other bright economic ideas from the economically illiterate left. $100,000 annual minimum wage, take money FROM the economy, filter it through the gov’t, take away 50% and give the rest to union members to stimulate the economy then claim you solved the collapse, buy paid for perfectly functioning vehicles, destroy them so they can then go into debt to buy a new car causing a massive carbon footprint (which has no global impact at all anyways) ETC ETC ETC. The left is LOADED with economic IDIOTS !! FDR ORDERED citizens to give all their gold to the gov’t in pure Nazzi fashion, and all his policies made the Depression WORSE, and these are the policies Krugman is pursuing. We have CHILDREN on the left with loudspeakers in the media telling us how the grown up world is “supposed” to be. Look at ANY GARY post, or any liberal post at any web site.

    • Colin

      Syrin,

      I am curious. When did you decide that you hated people who weren’t like you? What event led you down the road to hating all people who don’t believe like you?

      I find your hatred to be absolute. I find that you don’t believe in exceptions. Are you aware that this hatred, instead of helping you, makes you appear as a raving lunatic?

      • 2Gary2

        sad to say the VAST majority of conservatives live in such fear (due to being so low information) that they tend to lash out and attack anyone who has a different opinion than they do.

        • davidmpark

          Gary – pot, kettle, black…

    • Hambone

      I fear you might have given Congress and Bary some ideas that they might run with: an exempt minimum wage; cash for functioning vehicles; government funding of unions to fuel the economy.

      That’s the danger of irony. The way our elected officials make decisions lately, I fear you may have just helped them write their party platform.

      • Scott Solinko

        Um these are things they have already done. The cash for junker program and any Government employee.

    • otter1111

      It’s pretty scary when Pravda is making more sense in some of their articles lately than the liberal mainstream media.

  • Malak

    Whose face on the platinum coin?
    O of course!

    • John Thomas

      Or Turbo-Tax Timmy Geithner!

  • davidmpark

    Okay, here’s the problems I’m seeing with this scheme:

    Platinum prices today (01/07/2013) are at $1,559.00 / troy oz. Now, if they mint regular sized troy ounce coins stamped at $1,000,000,000,000.00 denominations, then the price of the metal wouldn’t hold up in exchange. No one in their right mind would take a trillion dollar coin worth $1,559.00 of metal at face value because that would create massive inflated wealth of dollars out of thin air to cover the face value if the coin was sold at spot price.

    So then to cover the vast metal spot to face value the coins would need a large amount of platinum. To match the trillion dollar value the coin would need to weigh in at 641,436,818.5 troy ounces. The US Mint won’t say how much reserves and purchases of platinum they have, but world production as of today stands at 149,043 /troy oz and rising 1 every 30-40 minutes. World reserves are about 1,128,604,928 /troy oz. Pretty sure the US mint doesn’t have it all. We can’t get even close to a trillion dollars in metal value for one coin much less dozens, or trillion of dollars worth.

    Also, platinum is a very rare precious metal with much more industrial applications than gold and silver, so it trades much higher right now and is far more volatile. Betting on it to back debt is foolish. To back gold and silver for debts is more stable than backing on platinum!

    No, it won’t work. It’s just a way to get those investing in gold to hedge against the dollar to support another scheme. That’s all this guy has are these schemes and pony shows. That’s not real leadership; it’s barely manager behavior.

    • Mondobeyondo

      ” No one in their right mind would take a trillion dollar coin worth $1,559.00 of metal at face value because that would create massive inflated wealth of dollars out of thin air to cover the face value if the coin was sold at spot price.”

      Bingo!! We’d have the exact same problem we have right now! It’s a bit harder to print coins out of thin air, but still…

    • davidmpark

      Um, I didn’t write the first paragraph well enough: the agony of all day work and writing an opinion in the middle of the night.

      Let’s try and example: let’s say there’s two friends, call them… Syrin and Gary2. (Yeah, I’m using their names for the giggles – just go with it!) Syrin sells Gary2 a platinum coin with a face value of 1 trillion US dollars at spot value of $1,559.00. Now, Gary2 goes to a place where gold and silver are real money; let’s say… Utah.

      So, Gary2 goes to a Utah Wal-mart and grabs everything he can. He goes up to the teller and hands her the trillion dollar coin. Since the face value is 1 trillion US dollars and only certain things in Utah can be paid for in gold and silver at spot value, eventually the ACLU forces Wal-mart to honor the US minted coin for the face value. Gary2 gets his stuff and billions in change.

      That’s the scenario I was trying to describe in the first paragraph with poorly chose wording. Without the spot value closely backing the face value then the dollar amounts are inflated without Fed Reserve inflationary spending.

    • Scott Solinko

      The coin would never be sold. Just to the fed. THey would never go to circulation. An American eagle Silver coin is only worth $1 face value but we spend $30 for it. It would be the opposite case – where the face value was worth more. Which Sounds like our current currency.

  • Me

    Why stop at a trillion?
    The infinity (and beyond) coin. Has a picture of Buzz Lightyear on the face. Never have debt again. Ever.
    Face it, that’s what we’re already doing. Might as well stop the pretense.

    • Mondobeyondo

      $10,000 to the 100th power, to buy a hot dog…

  • Ralfine

    Making coins has just the same effect as printing bills.
    You have more money than products.

    That basically happens too, when you destroy the products you buy without destroying the money.

    Or when you buy products which only purpose of being is to be destroyed without providing any other economic benefit.

    Inflation. Hyperinflation.

    However, it would be different, if the state would pay workers that build roads with those coins, instead of taking that money out of tax accounts.
    Then you’d have tangible economic benefit, and coining would be balanced by products.
    The state could then take a road tax on these roads to finance consumption, like power consumption in government buildings, welfare and defense.

  • http://twitter.com/ChartistFriend ChartistFriend

    Michael, your writing talent never ceases to amaze me. Congrats on another brilliant article that deconstructs the spin and reveals the real issues.

    • MichaelfromTheEconomicCollapse

      Thank you for the kind words. :)

      Michael

  • MeMadMax

    This is a setup.

    The end goal will be after the dollar crashes to have another form of monetary payment/system “socially acceptable” to the iSheeple when it is available to take over. Only problem is the destruction caused in the transition and non-existent recovery(lol? Think prison planet) will make somalia or some other african third world country look like The Hilton suites… complete with a menu of “presidential” suites of any size of your choosing… lolololol

    • JAH666

      You are certainly correct about this being a setup. The entire debt = money scam has about run its course and is being kept alive until the brilliant thinkers that work for the world-wide banking cartel can formulate the next system to replace this one. While things wind down, they will drain every possible cent from the middle class the world over. Once they have an alternative that will keep the power in their hands, and the structures to enact it are in place, they will initiate the final ‘self-destruct’ sequence on the present system. After a few weeks to months of chaos and social breakdown, the sheeple will be begging for an answer. The cartel will announce that they have the answer and all we have to do is put the problem in their hands. Voila, the power remains in their control and we remain debt slaves to the same masters that we have had all along. Want to change things? See the writings of JS Kim at SmartKnowledgeU for a way to keep from being a sheep ready for slaughter.

  • MeMadMax

    Why are they talking about coins anyways? Most of it is just numbers on a computer now a days, easily manipulated with a simple keystroke or click of the mouse… Imagine that… Now that’s something scary… Here’s a scenario: Say we finally go after the fed… the fed says “If you do, we will destroy you, within seconds, literally with a mouse click”… *Click* Suddenly, the treasury has their account zeroed out and the gov ceases to exist within a few hours… Sounds good to some, but on the flip side, money is needed to keep them ICBM’s ready to fly….

  • kah

    Printing debt free money is the essence of a sovereign nation………..
    Controlling the QUANTITY of debt free money is the essence of FREEDOM.

    Debt free money is the only way to restore REAL PROSPERITY to the American people.

    • AntiCollectivist

      No, being FREE to choose, individually, what we want to use for money is the essence of economic FREEDOM.

      Having government trash shoved down our throats at the point of a gun, whether it’s borrowed or printed, is the essence of economic TYRANNY.

      There are no nations – only farms. On these farms, though, the cattle are you and me my brother.

      • kah

        If only you and say about 5 other people lived in this country, then being FREE to choose individually what you want for money would be ok……..btw you still have a LEGAL right to barter with whomever you choose using whatever as money.

        But we live in America with over 300 MILLION people. A COMMON (Public) MEDIUM of EXCHANGE is necessary FOR COMMERCE. However unlike now, it must be closely regulated by Congress and not in the hands of PRIVATE BANKERS which is the problem with money today.

        Having said all of this, I do believe in an ALTERNATIVE COMPETING CURRENCIES with NO government intervention……..people with gravitate to the one which works the best.

  • istokov

    Возможно внешний долг USA это не государственный долг а долг элиты USA.Элита получает реальные ценности за бумажки с цифрами которые печатает Fed,финасовый инструмент элиты.

    • K

      translate Probably external debt USA it not a public debt and a debt of elite USA.Элита receives real values for pieces of paper with figures which prints Fed, финасовый the elite tool.

  • istokov

    Элита USA через свой финансовый инструмен Fed получает реальное богатство за обычные бумажки с цифрами.Возможно государственный долг это не долг USA а долг элиты USA.

    • K

      translate Elite USA through financial инструмен Fed receives real riches for usual pieces of paper with figures. Probably public debt it not debt USA and a debt of elite USA.

  • Colin

    I don’t know enough about either option to make a decision. I do know that March is shaping up to be very ugly. This month will see a perfect storm of events: there will be negotiations on sequestration, on a new spending bill, and on raising the debt ceiling. There are Republicans who are calling for a shutdown of government. Maybe they are thinking that this shutdown will result in an outcome more favorable to them than the last time they closed the government in 1995.

  • Ralfine

    found an interesting book: ISBN 978-0-141-19256-7
    PENGUINCLASSICS.COM

  • Mondobeyondo

    We should have never gotten away from a gold-backed currency in the first place.

    • JustanOguy

      We should have never become so reliant on the District of Corruption and Wall St. in the first place.

  • http://www.facebook.com/jackie.milton2 Jackie Milton

    We really dont have the option to keep or discard our present system. It will collapse and there’s nothing we can do to prevent it. The only question is when it will collapse.

  • EDAQUASURE

    The real solution to all this debt and debt based money is to use real money.Precious metals.If the congress were to reprice platinum to $50,000 an ounce,gold to $20,000 an ounce and silver to $500 an ounce there would be ample supply to pay the debts and start a new system based on what the constitution intended.No more fractional reserve banking.(creating money out of thin air).They know this is the fix but they don’t want it because they would no longer have cheap money to control the world and it’s resources.

    • 2Gary2

      there is no way a gold standard would work. end of discussion. If you can not figure out why you are beyond help

      • davidmpark

        Yeah, a gold standard does work. It won’t work in our current situation as we are not using money in the proper definition. We’re using fiat currency backed by debt and belief – gold and platinum can’t back that effectively. Money is defined as an agreed upon medium of exchange with it’s own intrinsic value.

        • 2Gary2

          I do not want to base any economy on how much gold is mined in South Africa. This is plain common sense.

          • davidmpark

            Okay, do you get paid to make these kinds of comments? If not, that is so very sad. Why South Africa… there is no sense at all in that comment.

            Get professional help – seriously.

          • 2Gary2

            a lot of gold is mined in South Africa

      • bwoboe1

        It works well since it is tied to a rare and precious substance. New money cannot be easily “created”
        The problem occurs when someone arbitrarily states the ‘worth’ of said money. Precisely why you néed competing currencies to let the market set worth.
        The money supply contracts when an arbitrary amount is assigned to a quantity of precious substance.

  • cleo

    The only reason for the “Progressive” income tax is to steel your hard earned money and redistribute it where they see fit.

    • 2Gary2

      what a low info d-bag

  • donald wilson

    Change must occur, the current system is broken. We must rid ourselves of the Federal Reserve. Then Congress must muster the intestinal fortitude and do what they were elected to do. As the old saying goes lead, follow, or get out of the way.

  • tato

    there is no such thing as debt free fiat money. If the treasury would print the money out of tin air instead of the Federal Reserve, the treasury would be borrowing directly from the taxpayers. And the taxpayers would pay back the debt through inflation

    • MichaelfromTheEconomicCollapse

      Inflation is preferable to stealing money from future generations like we are doing now.

      Michael

  • AntiCollectivist

    “We only have those things because we have chosen to have those things.”

    Yet another collectivist whore – how sad. Until people remove the wool from their eyes and recognize that it is not “we” but “them” – nothing nothing nothing will change.

    Eliminate the word “we” from your vocabulary and you might regain some credibility, at least in my eyes.

  • Dale A.

    I am in favor of ending the Federal Reserve Bank. I like the idea of capping federal spending via percentage of GDP. I support tariff income. I support strong American Business and Strong American Households.

    • AntiCollectivist

      I got news for ya bub – ain’t no such thing as America. That’s just the name of a human tax farm that some assholes in powdered wigs set up a few hundred years ago.

  • bubba

    Your headline implies that you are under the delusion that taxes are meant to pay the bills. They’re not! They haven’t been paying the bills for decades. There are two civil acts whereby the people give their consent to the gov. as legitimate. The first is voting. I’ll let you figure out the second one.

  • dcj

    All the existing holder of our debt Japan, China, and the FED would be stuck holding the bag. Nobody would buy our debt but I guess we wouldn’t need it because the Congress would fund spending directly with printed money.

  • thumper

    why not just use those chocolate dollars that are wrapped in shiny foil and say those are worth a trillion dollars? they come in differerent colors too.

    • Mondobeyondo

      How about wooden nickels? Termites love ‘em!!

  • http://www.facebook.com/people/Joe-Palladino/100001624813101 Joe Palladino

    Taxes are about enslavement and control, that’s why.

    • 2Gary2

      no they are the price of civilization and an orderly society.

      I love seeing on display the sheer ignorance of conservatives. Thanks

      • http://www.facebook.com/WizardKiller Mark Are Reynolds Ⓥ

        You have GOT to be kidding. If they can create money out of thin air then taxes are not needed except to fool you. Did it work? I guess so.

        • 2Gary2

          How can I respond? I hope your kidding…

          • david

            Your faith in government is touching, but misguided.

      • Arrowood

        Ignorance? Perhaps you should Google “currency reform.” You are living in a world of illusion created by oligarchs to control and use you. There is no reason why we must pay taxes or have a debt backed currency (except for the fact that it empowers the oligarchs and enslaves the people.) We must abolish the Federal Reserve (a privately owned corporation) and return the power of creating a debt-free money to Congress and the people, to benefit the people and not the bankers. The Treasury could print new United States notes and pay off the national debt. Simultaneously, all bank reserves would be raised to 100% so the change would not be inflationary. We don’t really need to pay taxes. When the government needs to fund activities (infrastructure, defense, etc.) it would create money and spend it into the economy. The key is keeping the supply under control. Taxes are simply a scheme to control people, they are not needed to fund government. Heck, taxes only fund half the government anyway. The other half is borrowed into existence by the government! If the government can print a bond (debt) then it can also print a note debt free. Of course there is the risk of over printing causing inflation, BUT WE’RE ALREADY DOING THAT NOW WITH THE DEBT HEAPED ON TOP COSTING INTEREST AS WELL! Wake up people! You are trapped in an illusion created for you by your masters. The power to create money must be taken away from the private bankers and returned to Congress and the people. By the way isn’t it interesting that right after they passed the Federal Reserve Act we go the income tax? Hmmm?

        • 2Gary2

          bro-this article is over a year old.

          • Arrowood

            I’m not your “bro.” You haven’t addressed anything I said, therefore I simply cannot take anything you say seriously. You are still just as uninformed as you were a year ago. I’m trying to get people to open their minds to the truth of the monetary system and how it is designed to keep the oligarchy in power. I will say it again: If Krugman believed that the debt ceiling impasse in congress could be circumvented by the simple creation of one trillion dollars (not the borrowing of it) then monetary reformists like me are correct when we say the US Treasury can just create all the money it needs. It means the Congress can instruct the Treasury to create enough money to pay off the national debt and simultaneously pass a law that abolishes the fraudulent fractional reserve banking system and mandates honest 100% bank reserves to counterbalance the creation of the new money. From that point forward no taxes will be needed because the government can just create the money needs by spending it into the economy to build roads, hospitals, schools, etc. We have the technology to monitor the money supply and Congress could pass a law limiting the rate of growth with an exception for war or other emergency. Wouldn’t it be a wonderful world in which to live? Plenty of money created debt free for the benefit of all people and no taxes. Taxes are simply a way for the oligarchs to control people. Forget left/right, repub/dem that’s all a dog and pony show to keep you busy so you can’t see the truth. I guess in your case it’s working. Please do some reading about monetary reform and educate yourself. You are being robbed by the politicians with taxes, by the bankers with interest, and by both with inflation.

    • Matt R in MN

      Spot on comment

  • ian

    ‘liberal media’ there goes that word again. That magical fairytale land where liberals actually have their voice heard among the torrent of conservatives talk radio and conservative stations.

    • banana breath

      The liberal media is also known as main stream, and yes, the channels are owned by degenerate liberals. Talk radio is alternative media. You won’t always get the truth from talk radio, but you can be 100% sure you’re getting 100% B.S. from the main stream media. That’s why their popularity is dropping. We might be dumb, but we ain’t stoopid.

      • 2Gary2

        most media is controlled by the right wing hate machine.

        • JustanOguy

          Most media is controlled by the Big Government lovers and the huge corporations paying their bills.

          Right or Left… it’s still about Government being the solution to all of the problems.

          When in fact… It’s government and the corporations running it that are the problem.

          Whether it’s the war profiteers or the give everything away for free crowd… the big Corporations benefit.

          • ian

            Is that what Rush Limbaugh, Sean Hannity, and Bill o’riley told you to think, or are you actually using your own brain for once?

      • ian

        exactly as gary said. Do your research and you will find that all media is controlled by corporate fat cats who primarily are conservatives. And quit labeling everyone who disagrees with you as ‘liberal’. It’s immature an gets us nowhere.

      • Gay Veteran

        main stream media is CORPORATE MEDIA, get a clue

    • Ajaxx

      I assume you are referring to that low information channel: PMSNBC.

  • FreeThePeople

    Why not print several Trillion Dollar (or Euro or Pound) Coins and free the whole world out of debt?

  • davidusromanus

    For the same reason the Federal Reserve didn’t everyone in America a $10,000 check, (total cost, $3trillion) instead of creating $16trillion and giving it to the big banks and corporations, little guys don’t count. Only government connected people/corporations get any of that money created out of thin air.

  • Steve

    If one is to control the economy (Fed) then one must have the means of infusing currency (not money) into the system AND removing currency from the system (taxation)….there you have it

    • http://twitter.com/CEOAmerican CEOAmerican

      Yes,….after years of controlling the educational system and the media….this is the third step!

  • college kid

    tax the rich.
    Gary2 will agree.

    • 2Gary2

      you got that right–glad my wisdom is rubbing off on folks.

      • http://www.facebook.com/people/Joe-Palladino/100001624813101 Joe Palladino

        Wisdom? You’re downright insane, seek help.

  • Guest

    Alot of this stuff gets blown way out of proportion. Take the national debt. 2/3rd’s of this or around $11 trillion is owed right back to the american people. Since the fed can print us dollars out of thin air theoretically america can take up as much debt as it wants cause all debt is in us dollars. Look at japan for example; their public debt is over 200% their GDP and they’re in the top 3 super economies in the world. A better way to look at it is the american economy which generates a gdp of 15 trillion dollars a year by if you think about it a very small percentage of the world’s global population.
    Personally i think we should go back to some kind of gold standard cause the problem with debt free money is the risk of inflation; every dollar you print makes the last

  • Mondobeyondo

    Just a heads up….for those who don’t know.

    A trillion dollars is a massive amount of money. There are many billionaires in the world. There is not one single trillionaire. Well, not in the Western world, anyway.
    ———————————–
    1 dollar – $1.00
    Get a couple more of these, and you may be able to buy a McRib meal at McDonald’s. For $5.00, you might get two McRibs! Wheee!!

    One hundred dollars – $100
    The vast majority of us don’t have this much money in their wallets or purses.
    But wait, there’s more!

    100 thousand dollars – $100,000 – Kim Kardashian and Honey Boo Boo territory (maybe). I’m pretty certain Jay Leno spends that amount on dinner for his staff after each talk show. Hehehe!!

    1 million dollars -the winner of “Who Wants to Be A Millionaire,” among lots of people. Make it to this level, and you’re among the big players now. A million dollars isn’t worth what it was years ago though.

    Okay, here where it gets interesting! Those previous numbers were just high school figures. Let’s head into the big leagues now!!
    ——————————–
    $1 billion – $1,000,000,000
    Cool! This is Bill Gates, Steve Jobs and Warren Buffett territory. (Steve is no longer with us, so he can’t enjoy any of his Apple assets anymore.) All of us hope to ascend to this level one day. Even the CEO of McDonald’s.

    $1 trillion – $1,000,000,000,000
    Robert Mugabe (president of Zimbabwe) territory. Unfortunately, all his money is pretty much worthless!

    After a trilion, comes a quadrillion.
    $1,000,000,000,000,000.

    Then comes a quintillion.
    $1,000,000,000,000,000,000.

    Then comes a sextillion.
    $1,000,000,000,000,000,000,000.

    After that comes a septillion, an octillion…. pretty soon, you’re talking about real money! Try paying THAT off!!

  • markie

    I have a 10,000 Billion German Mark from 1921. It’s worth zero. In Jan 1921 that Note would have bought a large bread baking company. By July, 1921 that same Note would only buy a bread truck. By November, 1921 it took two of those Notes to buy a loaf of bread. Inflation can happen that quickly.

  • Mondobeyondo

    Are any of you old enough to remember a game show called “The $10,000 Pyramid”? It was really popular in the 1970′s., unfortunately I do not remember the host of the show. I spent much of the summers of 1976 and 1977 addicted to watching that show.

    Eventually it went from the “$10,000 Pyramid” to the “$20,000 Pyramid”, to the “$50,000 Pyramid”, and then it went off the air.. A pyramid scheme, if there ever was one!

    Our financial system is headed the same way.

  • George

    Michael:

    Your proposal would have other consequences besides the elimination of the Federal Reserve and the IRS. First, without US Treasury bonds and notes serving as AAA collateral, the derivatives market would collapse and usher in a second great depression. Second, foreign central banks that hold US debt obligations as reserves would dump them en masse because the US, in effect, would be levying an “inflation tax” on their holdings. Central banks generally do not like to pay taxes. Third, the trillions of dollars, currently squirreled away in tax havens would be repatriated to the US because tax havens would provide no protection from an “inflation tax” on their dollar holdings. Fourth, the “inflation tax” would be a pure, unadulterated flat tax not only on US citizens but on anyone holding US dollars or US debt obligations anywhere in the world– it would be a “world-wide” tax. Fifth, interest rates would sky rocket and crush the stock and bond markets along with the derivatives market. Sixth, American voters would finally pay attention to federal spending because each dollar spent would be a tax shared by all– suddenly everyone would be a taxpayer paying a flat “inflation tax”.

  • energizedmortal

    when the money is put aside and the bombs come out control and power are most important. I feel that people that do have the “power” think “let there be no planet before I relinquish my world control”. People with no power are mentally disturbed. Imagine people with power that are mentally disturbed. We are all in for a “good one”.

  • 2Gary2

    Michael–this is a gimmick–you know something to show off how out of touch conservatives are…

  • 2Gary2

    We don’t have a debt
    crisis in America, we have a demand crisis. Which is why we also have
    an unemployment crisis. Average working people don’t have enough money
    to spend, so goods and services aren’t in demand, and therefore
    businesses aren’t hiring any new employees to make things because nobody
    can afford to buy them.

    We therefore need to redistribute
    wealth from those at the very top, who can’t possibly spend all the
    billions they’re hoarding, to working people whose new disposable
    income, when spent, will power the economy and generate wealth for
    everyone.

    • bwoboe1

      Hoarded wealth doesn’t do anyone any good. I hate seeing Walmart get subsidies from government in the form of welfare issued to their underpaid employees. Meanwhile the Walton heirs are amassing a fortune they will never be able to spend. Who does that help?

      Meanwhile, the elites keep us divided by pitting “ideologies” against one another and ensuring that each side has ample propaganda to support their side and demonize the other.

      While we argue over defending the rich, or providing govt assistance to the poor, the rich keep getting richer by playing both sides.

      Wake up people, Liberal/conservative democrat/republican are just false dichotomies manufactured by the media to keep us divided, ignorant, and powerless.

  • Patriot Alice

    Imaginary solutions, for imaginary problems, by dillusional people…The 16.4 trillion dollar debt is real..

  • Orac4Prez

    I’m waiting for the reaction of all the rich folk who have shifted billions offshore in US dollar denominated bank accounts to avoid taxes and to protect their wealth, When/If this happens, the value will quickly disappear and they will be complaining even louder than anyone else..

    Incidentally, companies in many countries are already writing contracts in currencies other than the US dollar and have started dumping US financial instruments (currency/bonds/T-notes/futures contracts).

  • brian

    the US GOVERNMENT has no intensons of paying down the dept if the coin dose go into effect then I will buy everyone a bottle of don prion champaing this would be the first time if any that anyone in govt is really serious of paying down the debit also instead of 1 trillion why not 10 and just hover around 6T

  • none

    GOOD NEWS: Micheal:

    The reason why Obama can not Create A Trillion Dollar Coin?

    The word Trillion is to big to put on a coin.

    Boy Micheal, you sure are lucky to have us around o tell you these things.

  • justanotherfakename

    If we can wipe out the debt as easy as saying, here is a magic trillion dollar coin, indeed, why did we endanger our country borrowing money from China, and why are we indebted to a corrupt banking system. And as far as that gos, if we can bail out our corrupt banking system when they destroy the economy of middle America, why do we then have to even work for a living? We supposedly have a consumer based economy, so just have the treasury send a check for a hundred grand to every US citizen every year, and watch the economy take off, and tough luck bankers, you already had your day in the sun. Moral hazard would be an issue of course. Why work, why take care of your family, they would get a check like you do. But, the banking system is already there, free money, no jail no matter the crime. So sure, create that trillion dollar coin, and when money is meaningless, lets see what happens. We’re already almost in the dumper as a country, we could party big time before the final societal collapse.

  • Craig

    It would really be fun to see how creative Obama gets if the republicans in the house refuse to raise the debit ceiling.

  • tacoma

    The year was 45,000 year BC. A recent Human arrival into Europe from Africa bumped into a bunch of Neanderthals. They started talking:

    N: What are you doing in my territory? Go back to Africa.
    H: Africa is busted. Climate is bad, and we humans hunted out all games.
    N: Well, things are pretty challenging here too. Or have you not noticed the Ice Age?
    H: Not to worry. Here, take this iron coin to buy food. One coin can buy one wild pig. In exchange, tell me where to hunt.
    N: Wow, the coin looks so cool. Gimme 10 of these and I will draw you a map to hunt the best game.
    H: Done.

    Walking according to map:
    H: Those N guys so dumb. They thought money mean something.

    Walking with 10 iron coins:
    N: Those home sapiens are so dumb. They thought I will actually draw an accurate map.

    A wild pig, who witnessed the conversation, rushed back to his gang of dirty pigs:
    P: Hurray, we are saved from being hunted. I just saw a N guy and a H guy exchanged fake money for fake map, and they both thought they have conquered Europe.

  • Miss Anne Thrope

    Crank up the presses, fire up the newest & best Xerox machine……if you & I counterfeited the $$$ the way the bankster cabal does, we’d be in the Federal Pen sucking mush through a straw & screaming like a school-girl when Bubba visits our cell after ‘lights-out. I’m certain that in the next month or so they will devise a new & more creative method of ‘can-kicking’ but just wonder when ‘broke’ will turn into ‘bankrupt’. The goings-on of the French Revolution are too good for these corrupt bastards. I give up!

  • Debunker

    “If Congress does not raise the debt ceiling that Obama should just have the U.S. Treasury create a
    trillion dollar platinum coin and use it to pay our bills.” 1) Um…no. Because that would lead to massive inflation which would just create an even bigger problem.
    “If the federal government can just create money whenever it wants…”

    2)No. It can’t just create money whenever it wants.
    “The U.S. Constitution actually grants Congress the power to “coin money”, so why is the Federal
    Reserve doing it?”
    3)Because the US is a debtor nation, and debtors
    cannot do anything but be slaves. They don’t have the privilege to create wealth in that manner, only creditors do. If a Nation wants to create money in that manner get out of debt FIRST!!!!
    “The U.S. Congress has the authority to create debt-free money whenever it wants to.”
    4)Yea, and he will end up just like Abraham Lincoln and JFK.
    “have the Treasury sell pieces of paper labeled “moral obligation coupons”, which declare the intention of the government to redeem these coupons at face value in one year. It should be clearly stated on the coupons that the government has no, repeat no, legal obligation to pay anything at all.”
    5)Won’t work. It doesn’t classify as either a negotiable instrument nor a security.

    This entire article is just one big pipe dream. But hey, aren’t Americans dreamers anyway?

  • http://www.facebook.com/people/Bruce-Richer/100001930670226 Bruce Richer

    because you are not an illegal immigrant. Only illegal immigrants can get both a huge refund and still not pay taxes while also collecting all the social benefits under one or more names………..it’s about ripping off white people

  • 2Gary2

    There are a lot of people whose livelihoods depend on keeping lots of conservatives terrified and ill-informed. And boy are they doing a good job at it.

  • JustanOguy

    The reason why we have the system currently in play is so that the Banksters can make a killing.

    The District of Corruption and Wall St. are one in the same…. Anybody who does not know that by now is an idiot.

  • Allan

    Please note, that Article 1 Section 10 Powers Denied to the States, Clause 6; No State shall make any Thing but gold and silver Coin a Tender in Payment of Debts;

    I cannot find anywhere that this clause was ever revoked in the amendments.

  • JW

    This is a great idea which, of course, has been around a long time. One form of it goes like this

    1. Treasury to issue currency directly

    2. 100% reserve banking

    3. Direct support for worthwhile projects such as

    infrastructure development.

    I personally favor under item 3 to introduce the guaranteed annual income which could use the IRS mechanism to disperse payments to low income individuals and above on a sliding scale. The scale and the size of the payments adjusted to maintain full employment aggregate demand.

    This could be coupled with a tax on business based on the unemployment rate. The higher the unemployment rate the higher the tax.

    The point of this last is to prevent business from attempting to drive wages down in the pursuit of profit.

    The underlying point of this is:

    1. Make the creation of money clearly visible.

    2. Limit the power of the banks over the economy.

    3. Prevent extreme shifts in the distribution of income and wealth.

    Especially the last point. For all the discussion of the pros and cons of maintaining a full employment economy little real consideration of wealth distribution has occurred. Even at full employment an economy which holds the savings rate at zero for a substantial portion of the population must produce ever increasing disparity in wealth between those who save and those who don’t. This should eventually cause an explosion.

    In earlier times the limited capacity to produce put the emphasis on improving the means of production. In the modern age the greater problem is participation. Assuring opportunity to participate in production and consumption. The current job centered approach does not work well at all.

  • Jerry

    Main stream media is the Obama Ministry of Propaganda and Misinformation. Amazing how easy it is to manipulate their adoring clueless masses…. put Barry’s image on the TRILLION dollar coin. For the obverse we can rotate Marx, Lenin, Stalin, Mao, Che, Alinsky, Soros et. al.

  • JW

    In reviewing the posts I notice the idea that money has value. Yes, go to a textbook and you will likely see the following somewhere:

    1. Money serves as a unit of account.

    2. Money serves as a medium of exchange.

    3. Money serves as a store of value.

    It should be clear that money serves the first two functions. It is used to facilitate barter transactions. Money allows barter transactions to be separated in time and space. For example, consider trading 1000 hours of work for a cheap car. With money you don’t have to find someone with a car who wants your labor but can buy the car in California for money and earn the money in New York at an earlier (or later) time as a wage or salary.

    But a store of value? The possibility of inflating a currency to zero should make you wonder about that.

    Money works when it facilitates an exchange of goods or services. Money is a tool to assist participation in production and consumption.

    When money is held (in the wallet, let’s say) it is not doing its assigned work. It is merely waiting for an opportunity to do its assigned work. To deliberately hold it as a store of value would mean that otherwise acceptable opportunities to facilitate exchange would be foregone. If everyone held onto their money in this manner the economy would quickly collapse for lack of trade.

    The store of value function is tricky indeed. It exists without causing harm only in the natural length of time between successive transactions which are themselves determined by the need for the underlying goods and services. To hold money for longer periods requires offsetting expenditure elsewhere in the economy to prevent collapse.

    Thus if money has a store of value function it exists only for the time between successive transactions.

    Consider the trade above of labor for an automobile.

    The value of the money needs to remain constant only from the time of the beginning of the 1000 hours

    of labor to the purchase of the car. If the order is reversed a loan will likely be involved but the issue remains the same. If all parties to the transaction are to get what they expect from the transaction in terms of goods and services the value of the money must remain constant during the period.

    If one views the time to complete a barter transaction such as the one above, labor for car, as the contracted time then the economy can be thought of as multiple chains of contracted time periods laid end to end. A little thought should convince the reader that there should be an average contract time for the entire economy at any given moment in history. Hence there should be an average minimal time length to the value that money must have to serve as a store of value in transaction.

    This brings us back to the issue of inflation. If the value of money is changing at a rate which is small compared to the average minimal time length money

    requires to serve as a store of value then inflation has little effect on the transactions process. It is hardly noticed. But if there is hyperinflation and the value changes substantially within the average minimal time length the transactions process will be severely disrupted. One works but the price of the car rises in the meantime as the value of money changes, for example.

    Thus money can and must serve as a store of value for short time periods determined by other considerations independent of the money itself.

    Due to the above considerations money cannot have an independent, intrinsic value. Money is not like gasoline which has intrinsic value as an energy source. Burn it now in a vehicle or seal it away and burn it 100 years or a 1000 years from now. It will still power your vehicle. Today’s money a thousand years from now will likely be worthless or valuable as a collector’s item if in paper or coin. Who can say?

    Money can never independently serve as a store of value and item 3 in the list above is clearly incorrect. Money really exists only as a unit of account and a medium of exchange. Its intrinsic value is zero.

  • Mark

    Let anyone who wants to create any type of money they want. As long as there is no fraud….let the consumer decide. We had this in the mid 19th century and it worked very well. The only way you can determine VALUE is if you have competition. Competing currencies is the way to go. All you,”there ought to be a rule” , people are wrong. The, ” rules” is how we got in this mess. Let the free market decide. Two words: Competition…..Consumers.

  • Aeffesstoo

    If Obama Can Just Create A Trillion Dollar Coin, Then Why Do We Have To Pay Taxes?

    What a racist thing to ask. You never asked anything like that when Bush went to Crawford. (/s)

  • jon

    Nice article, although i would like to point out one hole. Let’s say we were to follow through with tariffs, the problem with that is that if we put tariffs on our supplies other countries will put tariffs on their supplies, therefor neutralizing the benefit. back to square one.

  • disqus_UY1RyYhD1s

    It’s PRESIDENT Obama, asshole

  • http://www.facebook.com/people/Robert-Moody/100002352525743 Robert Moody

    You’ve missed the point completely. The purpose of taxes is not to fund the government,(although this was true once) the purpose of taxes is to put a drain on our income to keep us down.

  • John G

    Taxation maintains the legitimacy of the currency because it will only accept its own currency as payment. But the rich, who create most of the inflation pay the lowest tax rates.
    That’s a political problem.
    It is also an anti-inflation tool.

  • http://www.facebook.com/trixi.josowidagdo Trixi Triadi Josowidagdo

    That is a great idea,
    Government as the representative of the people should be allowed to print money. There is risk associated with it, but it is more sane than debt-money.
    See, money is nothing but a way to distribute goods and service. In an analogy, money is a blood. Blood functions as distributor of oxygen and nutrition to parts of the body. And there is an apparatus in the body that absorbs and produces blood. Now, we wouldn’t live for long if the blood is not produced within the body. So is our economy. If we don’t produce our own money, then our economy will not live for a long time.
    Of course there will come the issue of excessive money printing. But then again, has not this debt-money economy already produces excessive money/excessive debt?

  • Hans

    I use a supplemental program for my browser that blocks a good number of trackers. I’m blocking 12 trackers on this page (that I’m aware of). How can you be against the establishment yet allow so many programs to track your audience, thus compromising their privacy?

  • Tony

    Taxes don’t fund federal expenditures. All taxes do is create a demand for currency because our tax liabilities are denominated in US dollars, of which the US government is the monopoly issuer. Also, taxes also help to cool the economy, as a stabilizer, to help prevent inflation.

    Also, the US doesn’t borrow from anyone? Who does the US government borrow from. All money creation is ex nihilo and government spending is ‘money printing’, plain and simply. Federal spending, unlike households of municipalities, is costless for the federal government. And the US government sets the rate at which it acquires its ‘debt’ by the FED exercising its authority to do so.

    All hyperinflation arguments, comparing the US to Weimar Germany or Zimbabe, are born of ignorance. Both of those countries had the industrial capacity destroyed through war and corruption or both. More importantly, there debts where denominated in other currencies such the dollar (Zimbabwe) and Sterling (Weimar) which is what caused the hyperinflationary events. As long as US debts are denominated in US dollars, the US cannot default, it’s operationally impossible.

    With high unemployment, excess capacity, low industrial output and the huge output gap, inflation isn’t something worry about. If we we’re at full employment and the economy was at full capacity, then yes, inflation would be a problem, which why the government should be spending more, to create demand and the create incomes necessary in increase wealth.

    Lastly, any deficit reduction is fiscal equivalent of as a tax increase, since both remove income from the economy. The net private financial wealth of the domestic private sector is equal to public debt. ANy decrease in a the deficit will remove wealth from the private sector, since one sector’s deficit is anther’s surplus.

  • Tony

    Sorry about the spelling, punctuation and grammar mistakes, I’m on an Iphone.

  • Aester

    Maybe it is possible to pay for government spending on printing currency and manage the resulting inflation not to get out of control and does not become a hyperinflation. But we know that there is no free lunch, someone will keep paying that bill. Who will pay? The poorest, because the new money loses value while circulating and when it gets into the hands of the poor is already undervalued. The poorer, the greater the burden. The result of this system would be the big increase in poverty and social inequality.

    Sorry for my bad english.

  • Aester

    Maybe it is possible to pay for government spending on printing currency and manage the resulting inflation not to get out of control and does not become a hyperinflation. But we know that there is no free lunch, someone will keep paying that bill. Who will pay? The poorest, because the new money loses value while circulating and when it gets into the hands of the poor is already undervalued. The poorer, the greater the burden. The result of this system would be the big increase in poverty and social inequality.

    Sorry for my bad english.

  • victoriacoinexchangeny

    Taxes are very different with coins. Every tax we pay, government will save it as a way to build new investment. Compared to coins, if all American have coins where to find the buyers? It’s impossible to sell it because the market will be overbought. People want to sell it but another people want to sell it in the same time. who will buy it? It will eventually have no value even though it’s one the best future investment.

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