Treasury, Fed Kill Trollin' Dollar Coin

Tyler Durden's picture

And just like that the most surreal two weeks of sheer monetary idiocy is over, with the Treasury and the Fed both formally announcing the death of the trillion trollin' dollar platinum  coin idea, which was nothing but a cheap charlatan trick devised by page view-desperate media outlets to dumb down their already confused audience and distract from the fact that the US is, sadly, once again on the verge of bankruptcy.

As the WaPo reports:

The Treasury Department will not mint a trillion-dollar platinum coin to get around the debt ceiling. If they did, the Federal Reserve would not accept it.


That’s the bottom line of the statement that Anthony Coley, a spokesman for the Treasury Department, gave me today. “Neither the Treasury Department nor the Federal Reserve believes that the law can or should be used to facilitate the production of platinum coins for the purpose of avoiding an increase in the debt limit,” he said.

This is good news: at least the US monetary system will not devolve into an all out circus and parlor trick. For the time being at least. Because it is and always will be far easier to create empty, repoable "money" out of fungible electronic 1s and 0s, than an actual piece of metal.

It is even better news because one can now permanently filter out and ignore all destructive "opinions" originating from those vocal proponents of this monetary gimmick, some of whom even have awards not ironically named for the inventor of dynamite.

We won't even touch on what you need to know for the click-through and CPM loss this means for Series ZZ preferred round investors in slideshow-centric electronic media outlets located at the intersection of gossip and financial cluelessness.

Finally, and on a more serious note, this once again means that it will be once again up to the market to get the political left and right to come to a compromise, as was the case in the summer of 2011.

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JackT's picture

Doesn't Russia Have a giant field of diamonds?

macholatte's picture



 We aren't in an information age, we are in an entertainment age.
Tony Robbins


You look at someone like Beyonce singing 'Single Ladies,' when we all know she's married. Some of it is just for entertainment.
Katy Perry


Television is a medium of entertainment which permits millions of people to listen to the same joke at the same time, and yet remain lonesome.
T. S. Eliot


Multinational corporations do control. They control the politicians. They control the media. They control the pattern of consumption, entertainment, thinking. They're destroying the planet and laying the foundation for violent outbursts and racial division.
Jerry Brown


Skateboarder's picture

I'd say we're actually in the entitlement age. Everyone feels entitled as fuck because most everything comes so easy now. That only goes to first-worlders by the way.

flacon's picture

"Finally, and on a more serious note, this once again means that it will be once again up to the market to get the political left and right to come to a compromise, as was the case in the summer of 2011."


Let's hope that it's unlike the pre-New Year's winter of 2012 where the markets pulled out all the stops to the up side and fooled a lot of people! 

AssFire's picture

I'd say age of bathsalt..

When they aren't eating faces they are choking Rottweilers...NUDE!

Miami, of course. Story ends nicely due to gun ownership.

I'll leave it to others to easily conclude the attacker's race.

No mention if he had been hanging with McAffe earlier that morning...

Manthong's picture

This is so simple to fix.

They just need to make one 12 kilogram coin and value it at $16 Trillion and deposit it at the Fed Eccles building in Washington, DC.

Oh.. the coin needs to be made out of Plutonium 239 and kept in an explosive casing that implodes the moment that the current debt ceiling is officially raised.

Problem solved.

RSBriggs's picture

And the coin wouldn't be all that large - 12 Kg of P239 is a sphere about the size of an American baseball...

TwoShortPlanks's picture

What the BIS and Basel III people just did was say to them, ‘Take your time, China.’

Remember, the BIS is the financial hub of the UN/IMF/WB (CFR/CoR/Trilateral/RIIA/Bilderberg etc) system. They want to pull-down the affluent West and transfer that wealth to the 2nd, 3rd & 4th World (not the 5th tho). The DotCom, Housing and Bond Bubbles set the scene and the GFC is the excuse to dilute.

 A $Trillion coin is a silly distraction.

 Keep your eye on the ball from now on; keep your eye on the BIS at all times people!

We are all witnessing the Holdren White Paper (Ecoscience 1977) come to fruition, and as the Club Of Rome's master plan gets shifted into top gear.

Gold is the wealth transfer medium of choice, that's why the CBs have leased it out and also why the East is buying it furiously.

Manthong's picture

Oops.. I had a teeny typo.

I meant a 16 Kg coin ( $1T/Kg Pu239).

Although 12 Kg would probably work, a bit more of the problem area would be fixed with the additional 4 Kg.

Bastiat and Krugman would likely approve of this solution.


(But how much impact can a few trillion dollars or a paltry additional 4 Kg of Pu 239 have anyway?)  

a growing concern's picture

Only if Benny boy and Timmah and Lloyd and Jamie are holding hands around the coin singing kumbayah when it "goes off".  Otherwise, splendid idea.

Snakeeyes's picture

It was a cheap ploy to bypass the Constitution and Congress by Statist a**holes. 

But they will resort to SOMETHING drachonian because of the already excessive debt.

CompassionateFascist's picture

IOTW, the Rothschild Int'l Bank, alias the "Federal Reserve", said..."Uh, no...never mind the Plat. You still owe the Family $5 Trillion and counting. You may, however, pay us in gold at the current spot. Too bad there's none in Ft. Knox. 'Cause we already stole it."

Half_A_Billion_Hollow_Points's picture



Thanks for the fun, assfire

edb5s's picture

First three quotes were ok, but that last one is "part of the problem."  Multinational corporations are only the problem to the extent that the government has power over the economy.  With a government powerless against levying tarrifs, incentiving industries (and individual businesses), and providing for insurmountable barriers to entry for preferred sectors, there is no "power teat" to suck off of.  Absolution for said corporations this statement is not, but they are not to be blamed solely. 

Motorhead's picture

I think Russia has giant fields of all kinds of stuff.

joego1's picture

And they can see Sarah's back yard too.

A Nanny Moose's picture

Of course The Palinator never saiid any such thing. This was propoganda wrapped in satire by the overwhelmingly liberal. yet obviously geographically challenged, Lorne Michaels goons at SNL

sun tzu's picture

Has Barack seen the 57 US states yet?

TBT or not TBT's picture

Some have long trenches full of buried history you can't read about in the contemporaneous NYT reporting, because they covered for it.

nmewn's picture

Yes, they're not all excited to report on the outcomes, just the fervor of the moment...witness the career of NYT's reporter on the beat, the Pulitzer Prize winning (yawn)...Walter Duranty (Stalin apologist).

Banksters's picture

Finance, so easy a child can do it.  


All ya gots to do is give your friends lots of money so they stay in business to buy peoples assets for pennies on the dollar.

legorf's picture

hmmm the diamond market being close to a monopoly, you can certainly buy diamonds, now, try to sell them ... a whole different story.

daxtonbrown's picture

Paging Paul Krugman to the $trillion Monopoly phone.

icanhasbailout's picture

There's still Ron Paul's semi-sarcastic suggestion that the Fed simply rip up some portion of the T-bills it is holding. When I heard about this coin idea I immediately thought it was a stalking horse for that idea.

Motorhead's picture

The Fed/Treasury will default in due time.

HardlyZero's picture

Weren't they supposed to default last time, last time, last time ... ?    This time is different ?

s2man's picture

I doubt it.  Default would hurt the bond holders, i.e. the banks.  They will monetize the debt, which will hurt us, the people.  I would prefer default.

My solution - Nationalize the Fed and burn the notes. ala Ron's ripping them up.  This would solve two problems: First, debt problem is solved.  Second, no one would loan us any more money, forcing the politicians to live within their means.

aminorex's picture

Monetization doesn't hurt people, it hurts dollars.  Monetization will occur because there is no other way to reduce the debt owed, and there is no other way to force haircuts down to a sustainable debt level, in the current system.  Half the debt has to be destroyed in order to avoid catastrophic release of systemic stresses.  


The great, indeed overwhelming, merit of the platinum coin approach is that it makes the facts clear to everyone.  That's why it is hated.  The chattering classes want to kick cans and sweep the facts under the rug.

Nels's picture

Monetization doesn't hurt people, it hurts dollars.

That's a false choice.  It hurts both, every dollar directly, and most people in one way or another.   The precious few at the head of the chain get rich.

FEDbuster's picture

I am not at the "head of the chain", but I don't hold many FRNs either.  Some of us are stacking barbarous relics instead of paper IOUs.

Boris Alatovkrap's picture

Barbie relic is over pricing - Boris is to hold Vodka and Ethylene Glycol.

OpenThePodBayDoorHAL's picture

Best article I've read in five years. Sets the matter straight on the monetarists. Do not miss:


Sizzurp's picture

This platinum coin idea was always going to be a nonstarter with the Fed.  They want to extract every bit of public wealth first before they allow some sort of platinum default. In the meantime, get ready to be taxed unmercilessly of all your' wealth and property before a default is allowed to happen. That way the banks will own everything of any value.


"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered."   Thomas Jefferson

buzzsaw99's picture

If congress did their job we wouldn't have a fed or any debt at all.

aminorex's picture

Your sentiment is laudable, but you neglect an important factor:  The job of congress is not to build, but to destroy.  You believed them when they claimed that they were working for you.  That was your fatal mistake.  

machineh's picture

If congress did their job, Obama and Holder would be impeached, indicted and facing capital charges.

cranky-old-geezer's picture



If congress did their job Sotero would have been disqualified.

A Nanny Moose's picture

buying votes, and paying off their buddies, at all costs, IS CONgress' job. Debasement is just the logical conclusion. The Fed is just the enabler.

TheSilverJournal's picture

lolmao500's picture

And guess what, most of the Obamabots idiots supported the idea.

knukles's picture

(shrieking, crying uncontrollably... let down again by their own kind...)


(fucking idiots)

lolmao500's picture

Yep. Again and again they are being backstabbed by their lord and savior, yet they still believe in him...

Pure Evil's picture

Well, you have to believe in something, no matter how many times your god craps on your head and pisses in your mouth.

Its all good.

CH1's picture

And so it is: The state steals half their income and calls them moral defectives.

Yet, they bow down, obey without question, and destroy anyone who questions their masters/abusers.

It's a mad world indeed.

taniquetil's picture

Say what? You tellin' me that us low-income folk, aftah votin' for Barack Obama, and gettin' ObamaFone, and ObamaFoodStamps, and ObamaHousing, ObamaUnemployment, we wain't gonna get no ObamaCoin?


I dunno. Must be Bush's Fault. Or Sandy's Fault. Who knows. Yesterday on CNBC someone was blaming the flu for the downtick in GDP forecast.

knukles's picture

Any fucking excuse under the sun...
Even the most jaded are seeing through the propaganda of CNBS, et al

The there's Krugman
And the NYT

DosZap's picture

And guess what, most of the Obamabots idiots supported the idea.

Yep, ANYthing to end around the other branches of Constitutional government,making the House basically Eunichs.

nmewn's picture

And just when Krugman had thrown his entire economic credibility behind it ;-)

You can't find over 617 million ounces of platinum just laying around anywhere? Its not like fairy dust and unicorns?