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Good afternoon, I'm Still reporting on the economy.
The war drums of economic doom continue to *** in the United States.
This morning, the Wall Street Journal reported that top bankers are warning Republicans to
-- now catch this -- bankers warned Republicans NOT to pay interest on the debt ahead of social
programs. In other words, accept Obama's budget proposals,
or we will support a default on U.S. Government debt. What a turn of events!
As I've said before, a default will NEVER happen, but it shows what side the big bankers
are on at this point. More debt to cure America's debt problem is like more whiskey to cure
a drinking problem. We have to stop this -- why not now?
I say, "No More National Debt". A sovereign nation does not need to borrow. Congress has
full authority -- under Article 1, section 8 of the Constitution -- to "pay the Debts....",
and "coin Money [and] regulate the Value thereof...." No new laws are needed -- no Constitutional
Amendment. Just these two simple steps. Step 1: Let's pay these debts with coins.
They are the only money created without debt. The Supreme Court has determined that the
term "coin" money can refer to paper money as well as metallic coins -- but to be sure
there is no confusion here, let's just pay our debts in actual coins this time -- just
to make a point. In our last report, we saw that the Treasurer
of the United States said that we would need $417 billion by Nov. 7 to prevent a default
on the interest payments on U.S. Treasury Bonds. No problem.
We don't have to go begging to bankers for loans to make these payments. We can simply
pay them off in lawful U.S. coins -- so how about quarters?
The Treasurer has complete authority to do this without even asking Congress for legislation.
A U.S. quarter weighs exactly 1/5th of an ounce. Five of them to an ounce. 80 of them
to a pound. 160,000 to a ton -- that's $40,000 worth. That's 10.4 million tons of quarters,
or about 347,000 tractor trailer loads. Think of the jobs this would create -- not
only in the production of the quarters, but their transportation.
Once we learn that we no longer have to borrow money from bankers ever again, we can move
to Step 2 as proposed this morning by Karl Denninger on "The Market Ticker".
Since all spending bills must originate in the U.S. House of Representatives, the Speaker
of the House could pass a year's worth of government funding at the existing levels
of tax revenues and no more -- in other words a balanced budget. Then the Speaker could
adjourn the House sine die -- in other words, until the next Congress is elected about 13
months from now. Sine Die is irrevocable. "There would be no need for a debt ceiling
increase because there would be no deficit allowed," said Denninger.
The Democrat-controlled Senate would than have to pass this bill and have the President
sign it, or the Democrats would be totally responsible for the resulting chaos. They
could actually spin themselves as the big heroes. Brilliant!
I'm Still reporting on the economy. Good day.