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Art Cashin On The Trillion Dollar Coin Alchemy

Tyler Durden's picture




 

It would appear that even the venerable Art Cashin had to rub his eyes in incredulity at the recircling of the idea of the Treasury minting a "Trillion Dollar Platinum Coin" to solve the debt-ceiling 'problem'. His brief discussion on the idea is summed up perfectly in his final six words "anybody got an ebook on alchemy?"

 

Via Art Cashin: The Mayans Weren't The Only Ones With Strange Ideas

With a debt ceiling battle about to resume, a rather bizarre idea from last year's debate has resurfaced. It appeared on a couple of blogs and concerned the minting of a "trillion dollar platinum coin". Under section K of Federal law, the Treasury Secretary appears to have carte blanche on the design and issuance of platinum coins.

 

The Treasury normally writes checks against the taxes it collects. When the tax receipts run out, they borrow money (bonds) to write checks against. That borrowing can run up into the debt ceiling, resulting in the looming confrontation.

 

The thesis claims that Geithner should authorize the coin, deposit it at the New York Fed and write checks against it, rather than selling more bonds.

 

Anybody got an eBook on alchemy?

Only those who have no clue about the money creation process in a fractional reserve economy could be vacuous enough to suggest that an idiotic "fix" such as this has any hope of working. All the proposal does, in effect, is suggest a devaluation of the currency relative to an absolute precious metal asset, which in itself is nothing new, and most recently was conducted, with great "success" by FDR in the 1930s.

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Fri, 01/04/2013 - 11:04 | 3121925 francis_sawyer
francis_sawyer's picture

Piss is underrated... Pee all over your tomato garden all winter long & have a great tomato crop next year... [fuck Monsanto]...

Fri, 01/04/2013 - 11:17 | 3121989 IridiumRebel
IridiumRebel's picture

As a recovering addict, blaming something like your environment proves the mental illness from within. Life is tough. Man up and get a helmet and TAKE RESPONSIBILITY FOR YOUR FUCKING ACTIONS. Quit acting like a bitchass blaming others for your personal issues. 

Fri, 01/04/2013 - 11:25 | 3122016 savagegoose
savagegoose's picture

FUCK and i sold my only plat coin. plat too da moon.

Fri, 01/04/2013 - 11:35 | 3122063 Aurora Ex Machina
Aurora Ex Machina's picture

I think you meant "micro-biology" not addiction. Beer means your liquid is clean of nasty beasties, as the yeast / heating has removed them all. Which is why Russians don't consider (or didn't until recently) anything under 4%ish actually alcoholic.

Not getting the flux = the reason beer (fermentation) is so important. This is not a new insight either.

 

 

Lead a horse to water; doesn't mean it doesn't prefer a decent pint.

Fri, 01/04/2013 - 10:44 | 3121820 IvyMike
IvyMike's picture

Concentration of wealth is a primary characteristic of Civilization (City-Statism) observed by anthropologists and archeologists the world-over since City-Statism (Civilization) began it's brutal rule 8,000 years ago.

Problem?

"...the continuous consolidation of money and power into higher, tighter and righter hands." ~George H.W. Bush

Fri, 01/04/2013 - 11:41 | 3122093 Aurora Ex Machina
Aurora Ex Machina's picture

If you're a serious Primitivist, I'll go a few rounds with you as a sympathetic mind. I'll still trounce you, but I'll be more gentle than most around here.

 

My first salvo - please tell me you're not unaware of Çatalhöyük [Communist biased source]? Or the idea that the first city-states were fairly egalitarian? You can find the wiki here if you need to brush up on it.

Fri, 01/04/2013 - 12:42 | 3122392 tabasco71
tabasco71's picture

I think I've met this guy somewhere, he seems familiar http://www.businessinsider.com/daniel-suelos-currency-free-lifestyle-2012-4

Fri, 01/04/2013 - 12:24 | 3122225 Ghordius
Ghordius's picture

it has nothing to do with "City-Statism" or "stateless societies", wrong categories

it has everything to do with allowing or not private individuals to accumulate capital (yes capitalism)

most stateless societies are primitive-communistic, but for example (since you don't provide any) big-boat fishing stateless societies from Norway to the Pacific typically had this custom of the captain-owner being entitled to half of the income - be it from fishing or piracy - and the other half for the working crew

and this leads usually to the "normal" Pareto Wealth distribution (which is a power law curve) - particularly if the captain's wife & family stores/trades the gathered resources, as it was usual

the consolidation of money and power in a few American hands has nothing to do with it, btw, this is a Pareto Effect of Globalization

like goldfishes, wealth grows in this Power Law curve according to the pond's size - but some don't swim in local waters, they swim in global waters - stupid examples: Bill Gates and Steve Jobs

Try to sell communism instead of capitalism to the ZH crowd outright, I'm already laughing

Fri, 01/04/2013 - 10:41 | 3121805 IvyMike
IvyMike's picture

Isn't the Fed a good example of Privation Enterprise?

Privation and Private mean the same thing etymologically.

Deprivation - Private - privation - privilege - privity - privy
The University of Hull
http://slb-ltsu.hull.ac.uk/awe/index.php?title=Deprivation_-_Private_-_p...

Fri, 01/04/2013 - 10:45 | 3121827 Sudden Debt
Sudden Debt's picture

just by touching a trillion dollar coin would wipe off at least 100.000$ worth of atoms!

 

Fri, 01/04/2013 - 11:11 | 3121957 tmosley
tmosley's picture

Because a trillion dollars and two quarters don't add up to a cup of coffee?

Fri, 01/04/2013 - 11:28 | 3122034 jerry_theking_lawler
jerry_theking_lawler's picture

wonder what kind of bubble gum you could buy with this coin??

Fri, 01/04/2013 - 13:49 | 3122714 BooMushroom
BooMushroom's picture

Yeah, where do you spend a trillion dollar coin? "Hey brother, got change for a Bernanke?"

Fri, 01/04/2013 - 10:37 | 3121786 Snakeeyes
Snakeeyes's picture

Too late Art. I wrote about this WaPo idiocy a while ago.

http://confoundedinterest.wordpress.com/2012/12/09/strange-days-print-tw...

Fri, 01/04/2013 - 12:27 | 3122019 AgAu_man
AgAu_man's picture

Maybe Art read it, and decided to provide his 'value added' version?

Or maybe it wasn't officially sanctioned/vetted by the WSJ? I heard that sometimes "it's not what you know, but who you know".

I just came back and noticed all the Down arrows on Snakeeyes, who seems to have published it first.  Any particular reason to "dis" the author who claims plagiarism, that one of the 'Downers' would care to explain?  Or is it just stealth-mobbing?  Just saying.

Fri, 01/04/2013 - 10:39 | 3121788 Cookie
Cookie's picture

One up for the fermentation committee

Fri, 01/04/2013 - 10:39 | 3121790 Cognitive Dissonance
Cognitive Dissonance's picture

"His brief discussion on the idea is summed up perfectly in his final five words "anybody got an ebook on alchemy?"

The funny (troubling?) thing is that Art is so thoroughly conditioned within the money meme that he thinks that what he deals with on a daily basis, money, is 'real'. And that any other way other than the 'established' way to 'create' money is alchemy.

The entire money meme IS alchemy.

Fri, 01/04/2013 - 10:41 | 3121810 Hedgetard55
Hedgetard55's picture

Actually, that is 6 words, not 5.

Fri, 01/04/2013 - 10:43 | 3121816 Dr. Engali
Dr. Engali's picture

Tyler Rehypothicated one.

Fri, 01/04/2013 - 11:04 | 3121919 Acet
Acet's picture

See? Inflation is already at work.

Fri, 01/04/2013 - 10:45 | 3121826 mark mchugh
mark mchugh's picture

Yep.

How is this more/less legitimate than allowing congress to saddle millions with debts they didn't agree to?

Fri, 01/04/2013 - 10:52 | 3121861 Dapper Dan
Dapper Dan's picture

My new bumper sticker. (actually I could not afford the sticker so I wrote it in the dust of my  cars rear window)

 

Google Odious Debt

Fri, 01/04/2013 - 11:04 | 3121923 Cognitive Dissonance
Cognitive Dissonance's picture

Sadly it is inherited debt, something our young adult children are learning about right now.

Nice to see you haunting the threads Mark. :)

Fri, 01/04/2013 - 11:26 | 3122023 GeorgeHayduke
GeorgeHayduke's picture

"The funny (troubling?) thing is that Art is so thoroughly conditioned within the money meme that he thinks that what he deals with on a daily basis, money, is 'real'."

The idea that this entire "economy" which has been built on this fake money is been real or sustainable for the past 10-30 years is also questionable. When I hear people talk about getting this economy "back" I always wonder back to what? It's been a distorted scam for years now and we have no clue what a real economy would look like at this point.

Fri, 01/04/2013 - 11:43 | 3122102 Cognitive Dissonance
Cognitive Dissonance's picture

"It's been a distorted scam for years now and we have no clue what a real economy would look like at this point."

Agreed.

False hope chains us to impossible conditions and "getting back on track economy wise" is a false hope and has been for decades. But broken doesn't mean it can't or won't lurch and careen down the road for many more years until finally it is abandoned in a ditch on the side of the now crumbling road.

Fri, 01/04/2013 - 12:47 | 3122417 JOYFUL
JOYFUL's picture

The real economy?

 Nothing is True, Everything is Permissible.
-  Hasan bin Sabbah -C11th founder of the Order of Assassins

 

  "The story of Hasan bin Sabbah is a tale of sex, drugs, myth, and murder. A secluded mountain fortress, a paradisial garden, poison dipped daggers, and covert political maneuverings are the ingredients of this alchemical mixture, which is undoubtedly one of the most intriguing true stories ever told."

Now being channeled by a bearded lookalike who regards 'money' as 'tradition' and paper as wealth.Sex, drugs, myth and murder. The Real Economy.

Welcome to Amerika, where everything old is new again. Tradition like.

 

 

Fri, 01/04/2013 - 12:32 | 3122330 Ghordius
Ghordius's picture

Alchemy explained

it's all about"transmogrifing" lead to gold (or gold to lead, or gold to gold) in six fairly easy steps

 

1: gather gold

2: use it to back paper

3: use paper to finance war (that's the gold to lead part)

4: win war

5: profit from war (that's the lead to gold part)

6: keep the gold (that's the gold to gold part)

Fri, 01/04/2013 - 10:38 | 3121791 Bollixed
Bollixed's picture

The last refuge of scoundrels...how pathetic.

Fri, 01/04/2013 - 10:39 | 3121792 Stackers
Stackers's picture

It's a great idea actually as long as you outlaw fractional reserve banking and the federal reserve at the same time.

 

Fri, 01/04/2013 - 10:38 | 3121795 pods
pods's picture

How about we deposit the Stuxnet virus we developed for Iran in a FED computer?

pods

Fri, 01/04/2013 - 10:49 | 3121844 Cognitive Dissonance
Cognitive Dissonance's picture

Too funny. Be careful what you wish for my friend.

Actually you want the computers to remain operational after the fall of the Fed. You just want to disable the 'fractional' portion of the programming. However, we do need some actual "reserves" in our lives.

Oh.....and destroy the <Print> button (algo) as well.

Fri, 01/04/2013 - 14:23 | 3122927 cougar_w
cougar_w's picture

There is nothing going on over there that couldn't be solved via the liberal application a sufficient quantity of gun powder.

Remember remember the 5th of November ...

Fri, 01/04/2013 - 10:39 | 3121796 Iam Yue2
Iam Yue2's picture

Perhaps, if Mr Cashin had bothered to read some Jung, he would realise that alchemy is but a metaphorical system for transforming the self.............................  another option for Obama falls by the wayside.

Fri, 01/04/2013 - 10:44 | 3121819 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

No amount of self-transformation will completely excise the desire of some to attempt to change dogshit into gold.

-Carl Jung

(no, not really)

Fri, 01/04/2013 - 14:17 | 3122894 Cognitive Dissonance
Cognitive Dissonance's picture

Mrs. Cog informs me that Jung actually used the term "poo". After all, he was a gentleman. :)

Fri, 01/04/2013 - 10:39 | 3121798 yogibear
yogibear's picture

A huge US dollar devaluation on it's way.  

Fri, 01/04/2013 - 14:26 | 3122947 cougar_w
cougar_w's picture

The Chinese will be most displeased.

Timmy better mint at least two coins; he will need to send the Chinese one as a consolation.

Fri, 01/04/2013 - 10:39 | 3121799 caimen garou
caimen garou's picture

how about a trillion dollar silver coin, I mean with all the above ground silver that they say we have we would be out of debt plus have a surplus! sarc on or off you make the call.

Fri, 01/04/2013 - 10:47 | 3121838 kito
kito's picture

The federal government would have to hire a crane company to move that silver coin.....the moving cost would put them over the debt limit.......

Fri, 01/04/2013 - 10:40 | 3121800 realtick
realtick's picture

Does intrade have odds on when the deputy editor of Business Insider will be replaced or sent to rehab?

Fri, 01/04/2013 - 10:51 | 3121852 otto skorzeny
otto skorzeny's picture

he should be sent back to Israel

Fri, 01/04/2013 - 11:09 | 3121948 Bollixed
Bollixed's picture

The Hopium folks at Business Insider actually believe this coin would solve the problem.

Wizards I tell ya, nothing but wizards over there.

Fri, 01/04/2013 - 11:28 | 3122036 machineh
machineh's picture

When the future is hopeless, the weaker-minded turn to magical solutions.

Personally I favor magic beanstalks over magic coins. More green, ya know.

 

Fri, 01/04/2013 - 10:45 | 3121801 otto skorzeny
otto skorzeny's picture

hey Tyler -heard anything about Wegelin- Switzerland's oldest private bank closing beacause of all the heat from the US to cough up names? the old USofA is getting desperate and they are forcing people into the US's shitty banking system. capital controls are next-"THIS MACHINE IS CURRENTLY UNABLE TO DISPENSE MONEY"

Fri, 01/04/2013 - 10:52 | 3121857 tabasco71
tabasco71's picture

Sh*t yes, its gone...!!

http://www.telegraph.co.uk/finance/financial-crime/9779615/Switzerlands-...

Bad news for Switzerland as all the others were probably following the same business model. 

Thanks FATCA.

Depardieu won't be the last to head to Russia...

Fri, 01/04/2013 - 10:59 | 3121897 otto skorzeny
otto skorzeny's picture

there's always been something cooly sinister about discrete swiss private banks. but thanks to Uncle Sam-that's all been fucked up also.

Fri, 01/04/2013 - 12:10 | 3122229 tabasco71
tabasco71's picture

Agreed, but with all the AML and KYC crap that banks are being shackled with these days, you had to wonder how much longer they could keep their distance.

Spain has been after its rich expats too: offered a one-off single payment to HNW individuals if they brought their cash back onshore.  Once they are back in the system, I can only imagine its open season though... 

I'm interested to see if we ever get to know who these people are, ie: if its well-known's off the Forbes Rich List or if its criminals and other shady types... if its the latter, I can't say I'm too sorry for them.

Fri, 01/04/2013 - 12:47 | 3122414 Buckaroo Banzai
Buckaroo Banzai's picture

What I don't get is this: It appears that Wegelin's operations were entirely outside the jurisdiction of US law. So why did they cave? Did they somehow violate Swiss banking laws? Or did someone "get to" Wegelin's executives?

Fri, 01/04/2013 - 10:41 | 3121809 lolmao500
lolmao500's picture

Just mint a few million of those and hand them to democrat voters!

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