Gerry Canavan

the smartest kid on earth

#MintTheCoin?

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Minting the coin would interrupt that process, uniting Republicans — and many voters and business groups — against what they would see as an unsettling, illegal and inflationary power grab from the executive. And if you think the press spreads blame too equally over the debt ceiling, wait till you see the coverage if the White House decides to respond by creating a trillion-dollar coin out of nothing. You can explain the basic logic of fiat currency until you’re blue in the face, but it’s not going to matter. That coin would drive our country’s increasingly deranged politics, which are really at the heart of this crisis, to the edge

As far as I can tell Ezra Klein is the only person talking any sense on the platinum coin.

In the event that we actually breach the debt ceiling and Republicans don’t fold almost instantly, the situation changes. Again, I think this fairly unlikely. But if financial markets are roiling and the country is crying out for a resolution that Republicans, in a fit of political and moral insanity, won’t provide, then many of the drawbacks to minting the coin or invoking the 14th Amendment dissipate. At that point, such a move may seem entirely reasonable: It could bring relief to the public and the markets, and Republicans would properly take the blame — and the consequences — for having nearly destroyed the global economy. True crisis has the tendency to turn the utterly unthinkable into the absolutely necessary, as any policymaker who participated in the bailout of AIG will tell you.

But we’re not there yet, I don’t think we’re going to get there, and I think announcing a mint-the-coin policy in advance will make matters worse.

Written by gerrycanavan

January 11, 2013 at 1:38 pm

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