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kit you can figure out a way of forcing your bombing ministration to ignore
that they have
other options on the table
rather than waiting for speaker bone air
and his uh... merry band of not jobs
to premium posture about the debt ceiling limit an impassioned also ahead
that there's a lot of people think that the republicans when push came to come
to shove the will not
allow the country to default because it will hurt a lot of their constituents
specifically uh... their well over there to need
constituents they're they're very wealthy constituents
nevertheless
the question is is how to create
a sense
amongst the uh... beltway elite those people who feel like
do you have certain rules backup destroy that was a big victory for democrats
how to create an environment and where
the appears
that the president has other options
many people have uh... pointed to the fourteenth amendment of the constitution
which says that the death of the united states cannot be questioned
and the implication is that the president
has no choice
but to pay off these debts regardless avoid uh...
congress does
constitutionally he is bounded by the conch too
pay off those debts
there are other people who feel that uh... because the president has already
to tried to take the fourteenth amendment off the table
uh... because that could lead to some type of
my i don't know if it's a constitutional crisis but it would be uh... certainly
be something that could
uh... be sent to the courts
that there is another option
and namely it rests with the treasury's ability to mint
corns
any pointed there's a term for the same garage or whatever it is i don't know
how to pronounce natalie rosaries seen it uh...
c written
um...
the treasury
cannot maids
any koreans without authority
from congress has that story thirty two uh...
to mid to the koreans that are
uh...
of any nature itself for one type of course
and that is a platinum corny
and
there has been growing
calls
types like krugman nor even josh borrowed
joe wiesenthal
a trio simeon many others
who say that there is statutory authority
for the treasury uh... department
to print
to mentor i should say a platinum coin out general treasure department is
subject to the federal reserve's uh... control the money supply
platinum coins may be struck with whatever specifications the treasury
secretary sees fit including denomination
the law
that was passed to provide the treasury department would be a supporting
passed by congress
was intended to allow the production of commemorative coins for collectors
but it can also use to create any large denomination corina the treasury can
deposit
with the fed to finance the payment of the government bills in lieu of issuing
death
and in fact
the uh...
former
when we get his title straight here
the thirty-fifth director
of the u_s_ mint
from nineteen ninety-four until two thousand
weighed in on this topic
honda daily coz
in a diary of all places
and he wrote in meeting the one trillion dollar platinum coins
yes one trillion dollars
the treasury secretary would be exercising authority which congress has
created routinely for more than twenty two hundred twenty years
secretaries authority is derived from an act of congress in fact the republican
congress under power to presley granted to congress in the constitution article
one section eight
what is unusual in this case is that the law gives the secretary discretion
regarding all specifications of the coin including
denominations
the accounting treatment of the coin is identical to the treatment of all other
coins
strikes the korean
shifted to the fed
books one trillion dollars and transfers one trillion to the to the cherry
treasury's general fund
where is it available to finance government operations just like with the
proceeds of bond sales or additional tax revenues
the same applies for a quarter dollar
one in the presumably any other calling
once the debt limit is raised the fed ships the calling back to me
the counting treatment is reversed the korean is melted
the coin would never be issued or circulated in bonds would not and be
needed to back the coin
there are no negative macroeconomic affects
in other words
no inflation
this works just like additional tax revenue or borrowing under a higher debt
limit
in fact on the debt limit is raise treasure would sell more bonds the one
dollar-trillion uh... dollars will be taken off the books the coin would be
melted
this is not raise the debt limit so it can't be characterizes circumventing
congressional authority over the debt limit rather
it delays when the debt limit is reached
as preserves the congressional authority over the debt limit in a way that
reliance on the fourteenth amendment would not it also voice protracted court
battles over the fourteenth amendment
antique or challenge to the
issuing of this trillion dollar coin is likely to be dismisses one authority to
meet the court is firmly rooted in law that itself is grounded in the express
constitutional powers of congress
to treasury is routinely exercises authority since the birth of the
republican
and three the accounting treatment of according to his entire lee routine
and finally says yes this is an unintended consequence of the plan
calling bill but how many other pieces of legislation
have had a unintended consequences how we talked about one yesterday
that being the um...
the outlying of leaded gasoline
outward setting
that this is a bit of a gimmick
but as l paul krugman
wrote
yesterday
president obama will be faced with a choice between two alternatives
one that silly but by nine that being the korean
the other that's equally silly
but by the violin disastrous
the decision should be obvious
so the point of this uh... corning exercise
i mean this is now sort of
far through the looking glass we've gotten
it is to take seriously
the
fantastical and
completely
fictional and
silly notion that the republicans
would not allow or try and stand in the way
of the united states
meeting its debt obligations
with a nother silly idea that would actually allow the united states
to meet its
debt obligations
and all of this is just being argued it's almost an image that literally you
you know
really what would you see is to shadows boxing with each other
it's that
devoid of substance
and it's about where our politics have lettuce
but it is important in the implications are important because
the less
that president obama neil bombing ministration have
to rely
on this preening by the republicans in congress the less leverage an excuse
they have
to force any cuts to entitlements
all of this even if all this is result
it still leaves us with
the uh... sequestering shin
which of course is one point two trillion dollars worth of automatic cuts
half of which comes from defense half of it which comes from discretionary
spending
so you're talking about a twelve percent cut across the board of all government
functions
chard of
medicare and social erg
and
the bazaar
the brits are dynamic here is that
on one hand
most of the people involved in that argument
are saying that we have a debt crisis
that we need to bring down our deficit
these one point two trillion dollars in cuts of course
good
severely cut
our deficit
and had a hard outside etc into a uh...
a downward trajectory
yet everyone is terrified of it because they know it would sink the economy
because deep down they all know that what needs to happen now
is not possible d
is not cuts the government spending
but in increase of government spending
that we've already had the sharpest debt reduction
uh... excuse me deficit-reduction that we've had over the past three years than
we've had at any time
since world war two
that we have been lucky to sustain any economic growth
with this huge headwind of austerity
and so we're just g_e_'s
a stunning failure of our leaders it is a stunning failure of the media
uh... and the best thing that we could say since it's going on
is the fact that uh... we have now
serious morris is promoting the idea of
the the treasury knitting
a one dollar trillion dollar
calling
that is to be shuttle between treasury and the fed in the melted
it's unbelievable
i can't believe i left uh... the entertainment business in doing so
counts talk about this stuff
my god
out