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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Sat, 01/12/2013 - 17:48 | 3147562 blindman
blindman's picture

Penny drop landing on its side! ( from banking thiefs )
http://www.youtube.com/watch?v=qb_bogpBMck
.
Jitterbug Boy - Tom Waits
http://www.youtube.com/watch?v=nC3__wH10Pw
.
Tom Waits – Kentucky Avenue
http://www.youtube.com/watch?v=1DXXHT8v52I

Sat, 01/12/2013 - 17:50 | 3147566 knukles
knukles's picture

And "If they did, the Federal Reserve would not accept it."

So, prima facie evidence that a person at Treasury actually asked someone with a modicum of common sense at the Fed whether they accept shit like slugs, wooden nickels and really suspicious, worse that Euros and Zimbabwe dollar, coins.

LOL

 

"Noooooooooooooooooooooooo fucking way!  Are you crazy?  We got serious credibility to protect, dickwad."

Sat, 01/12/2013 - 23:13 | 3148102 mkhs
mkhs's picture

Hey, even I won't accept a Susan Anthony dollar coin.

Sat, 01/12/2013 - 17:53 | 3147569 MeelionDollerBogus
MeelionDollerBogus's picture

but come on guys, I'm SUPER CEREAL!

Trollion-Dollar Bogus coin!

Sat, 01/12/2013 - 17:53 | 3147572 muppet_master
muppet_master's picture

oh man !!

now the "mainstream media" is disappointed...what are they gonna tell their LOW INFO audience-as Rush Limbaugh has described them:  LOW INFORMATION AUDIENCE !!

i was hoping the QEorganizer would mint $2T and pay off the chinese their debt...and presto !! voila !! you know the chinese must be "disappointed" LOL !!!

ah chucks !! LOL !!!

Sat, 01/12/2013 - 17:56 | 3147575 muppet_master
muppet_master's picture

NOW !! congress must do its "job"

according to QEorganizer...and just hand him a BLANK CHECK !!! LOL !!

congress's job is to ALLOW the QEorganizer to RAPE and BANKRUPT the country with O-DEBT-BAMB-nomics !!

Sat, 01/12/2013 - 17:57 | 3147581 muppet_master
muppet_master's picture

and after US bankruptcy!!

after its all said & done...the "mainstream media" will blame congress for allowing the idiot QEorganizer to f up the country !!

Sun, 01/13/2013 - 06:54 | 3148529 blabam
blabam's picture

Rush Limbaugh's audience is the definition of "low information audience". It saddens me that people who read Zerohedge actualy still listen to that fat fuck. 

Sun, 01/13/2013 - 08:18 | 3148542 overmedicatedun...
overmedicatedundersexed's picture

so WAPO, in it's ultimate role as propagada king, has let the tax units know; the FED can tell congress and treasury what is money ,not the so called government of these here united states,, this has made the true power of the banks very clear, so clear, perhaps some states and elected office holders will wake up. there is a bulls eye now on the FED, this will not stand.

Sat, 01/12/2013 - 17:54 | 3147573 Fish Gone Bad
Fish Gone Bad's picture

the US is, sadly, once again on the verge of bankruptcy.

The US has been bankrupt for a while now.  This is where people might be confused, they see that debt acts like money... until it doesn't.  Debt is the fucked-up-evil-twin of money.

Sat, 01/12/2013 - 17:54 | 3147574 knukles
knukles's picture

PS  The other thing that is radically wrong is that a failure to pass an increase in the debt ceiling is not automatically an event of default.
Period
End of Conversation.

 

Another fear based meme by TPTB and media propaganda mechanism to sway the public with falsehoods.

Sat, 01/12/2013 - 17:57 | 3147579 debtor of last ...
debtor of last resort's picture

Watch how choosers become beggars. For mercy.

Sat, 01/12/2013 - 17:58 | 3147582 F. Bastiat
F. Bastiat's picture

It is not the US that is on the verge of bankruptcy - it is the US Government.

That distinction is critical.

Sat, 01/12/2013 - 17:59 | 3147583 Raymond K Hessel
Raymond K Hessel's picture

Default is our only escape from tax slavery.  Not platinum coins.

Sat, 01/12/2013 - 18:17 | 3147599 muppet_master
muppet_master's picture

when the US of kenya

DEFAULTS...will this cause the EUR to go on a trajectory to 0.666? currently @ 1.335, hey spx TEMPORARY bottom was 666 under odummer on 3-2009

@ 0.666 they can easily devalue the currency by 50%, just like Belarus (read ZH article today) on that....which happened on

5-2011, gold @ $1450 then on its way to topping @ $1900 on 9-2011..

http://www.zerohedge.com/news/2013-01-12/hyperinflation-action-beer-bag-cash

if EUR @ 0.666 = gold @ $300 = buy PHYSICAL like crazy !! on its way to $10k

gold @ $300 bc US will try to pay off debts trying to avoid major defaults and UNLOAD FT. KNOX ....major possibility you gold bugs !! i'm waiting for $300.

Sat, 01/12/2013 - 18:33 | 3147641 Bay of Pigs
Bay of Pigs's picture

$300 gold? The average cost to produce an ounce is now around $1200-1300.

Gold will never see sub $1000 again. It fact, it is severely underpriced at $1662. 

Sat, 01/12/2013 - 18:44 | 3147656 muppet_master
muppet_master's picture

NEVER SAY NEVER...

NEVER say ALWAYS = extreme words...

i'm sure those bugs that were buying gold @ $800 in the 1970s right @ the TOP had the same thinking.....20 years later @ $250......when countries start unloading their gold in unison to pay off debt = $300 gold = me BUY !! all in-no margin!!

but will bet the entire farm on physical gold....no contracts (unlike the silver brothers from the 1970s), no stupid ETFs....no need to monitor its price daily or monthly...whether in martian or kenyan dollars...just turn off tv and enjoy life....unlike casino you do need to monitor daily...whether long or short.

having said that...its a nice day here in CA...logging off.

Sat, 01/12/2013 - 19:29 | 3147707 Winston Churchill
Winston Churchill's picture

Depends.

Production costs also fall in a deflationary collapse.

Gold is still a hedge in real terms then as well,but not quite as good as

in hyperinflation.

Only best way to hedge against both is 50% cash and 50% gold.I leaves out

silver as it will get hammered like copper did in the last depression.Just don't

see it holding up in a deflationary collapse anywhere near as well as gold.

The smart play will be to buy silver producers with gold at the bottom,as near

as can be judged.

Sat, 01/12/2013 - 19:55 | 3147765 akak
akak's picture

 

Production costs also fall in a deflationary collapse.

When has a 'deflationary collapse' EVER been experienced under a fiat currency regime?  NEVER.

Every fiat currency collapse has been inflationary, as will be ours.  If you are waiting for some putative fiat currency deflation, you are in for a world of disappointment.

Honestly, I truly do not know where all this nonsensical deflationary blathering comes from, as NOTHING in monetary history supports it --- just the opposite in fact.  I have to presume it originates from historical cluelessness and/or disingenuous pro-Establishment propaganda maliciously designed to deflect attention and worry away from the TRUE danger, that of fiat currency debasement and/or collapse.

Sat, 01/12/2013 - 20:03 | 3147782 shuckster
shuckster's picture

Deflation is necessary to punish borrowers and collect their assets. Monetization happens in order to pay down debts and save the borrowers. But since the lenders are the ones who print the money, they have nothing to gain by doing a massive print and getting their loans paid in devalued dollars. Their best bet is to cause temporary deflationary periods where large debts acrued during inflationary period are paid with deflated dollars. The Fed has nothing to gain by printing away the debt, however, it has everything to gain by deflating and collecting the entire national asset as payment

Sat, 01/12/2013 - 20:16 | 3147813 akak
akak's picture

Your theory is utterly unsupported by any historical evidence, and is in fact refuted by virtually all of monetary history.

Moreover, that same historical record demonstrates conclusively that regimes have almost countless times engaged in the very behavior from which you believe "they have nothing to gain".  Clearly, they DID have something to gain from currency debasement, or they would not have consistently resorted to exactly that in the attempt to print their way out of debt (as every government, through their central bank, is doing today).

Sun, 01/13/2013 - 02:19 | 3148373 Raymond K Hessel
Raymond K Hessel's picture

I think he's mixing assets with currency.  The currency is being deflated, ie it is worth lesst than it was.  Or else I'm too drunk to know what he's talking about. 

Sun, 01/13/2013 - 02:26 | 3148378 cranky-old-geezer
cranky-old-geezer's picture

 

 

Deflation is necessary to punish borrowers and collect their assets.

This is one of the dumbest comments I've seen on ZH.  You have no understanding of inflation, deflation, monetary theory, nothing.

You sound like that "biflation" idiot what's-his-name here.

Sat, 01/12/2013 - 18:01 | 3147590 JOHNICON
JOHNICON's picture

Of course the Treasury and Fed did not want to do it.  It would have been government-created money not backed by debt.  It would not have been created by the banking system, so the pets of the banks (Fed & Treasury) refused to do it.  Why would they if it was not to the advantage of the banking system?

Sat, 01/12/2013 - 18:16 | 3147612 blindman
blindman's picture

if they had gone through with it it would have
been the conception of the fire breathing, two
headed incest child from hell and would have
worked to entertain and amuse all of the
registered muppets in the financial clown colony
formerly known as america.
some of the experts were up for the experiment
but cooler heads prevailed. they prefer the
seize the illegitimate assets and confiscation
route i guess? debt free money issued by the
sovereign is preferable, imo, but how to get there
from here will continue to be challenging and
require a crash and reset which will prove to be
unavoidable, and many may go to prison

Sat, 01/12/2013 - 18:36 | 3147645 s2man
s2man's picture

I have been asking, What's the difference between minting, printing or adding 0's to some electronic ledger? Its all created from thin air...

But you have answered my question, JOHN.  Heresy to cut the banks out of the deal.

Sat, 01/12/2013 - 19:20 | 3147674 blindman
blindman's picture

...Wake ....Up: Babylon's Banksters Run This World
Posted by Josh at 7:55 PM
http://chartistfriendfrompittsburgh.blogspot.com/2013/01/wake-fuck-up-ba...

Sat, 01/12/2013 - 18:05 | 3147597 Seasmoke
Seasmoke's picture

Someone make sure Krugman does not jump in NYC

Sat, 01/12/2013 - 18:08 | 3147600 AldoHux_IV
AldoHux_IV'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."

As if this is any real solution? It's one arm telling the other to continue the ponzi. What a joke-- there's nothing serious nor logical about the current setup and if anything the real comedic aspect about this is what the fed considers worthy of accepting as "money".

Bottom line, more distractions and the ridiculous monetary fraud continues-- there will be plenty of other useless stuff for financial pundits to huff and puff about that redirects our nation's discussions from more serious issues: changing and reforming the system.

Sat, 01/12/2013 - 18:16 | 3147613 Downtoolong
Downtoolong's picture

Because the current system of phony funny money creation is so much better....NOT!

Sat, 01/12/2013 - 18:19 | 3147618 news printer
news printer's picture
The euro crisis no one is talking about: France is in free fall

http://finance.fortune.cnn.com/2013/01/09/france-economy-crisis/

"The euro zone's second-largest economy is suffering more than any other member from a shocking deterioration in competitiveness. And it's doing nothing to stop it."

Sat, 01/12/2013 - 19:27 | 3147700 Everybodys All ...
Everybodys All American's picture

The miserables.

Sat, 01/12/2013 - 19:31 | 3147709 cardis
cardis's picture

soon they will evoke 219-2 L'T

Sat, 01/12/2013 - 18:24 | 3147628 SilverFish
SilverFish's picture

These coins were our only hope.

 

 

Good night america.

Sat, 01/12/2013 - 19:39 | 3147730 Bicycle Repairman
Bicycle Repairman's picture

Good night little Silverfish.  Mommy will be by to tuck you in.

Sat, 01/12/2013 - 22:56 | 3148068 SilverFish
SilverFish's picture

Must have been a solar flare i'm not aware of, because it seems everyones sarcasm detectors are all fucked up.

Sun, 01/13/2013 - 11:01 | 3148647 blindman
blindman's picture

@ s,
well said,
we have tried nothing
and we are all out of ideas.

Sat, 01/12/2013 - 18:25 | 3147630 whoknoz
whoknoz's picture

Hey Paul...is that fuse under your desk actually lit?....

Sat, 01/12/2013 - 18:29 | 3147635 PUD
PUD's picture

OMFG!!! THIS IS THE FIST STEP TOWARDS LIVING WITHIN OUR MEANS!!  LIKE YOUR FIRST PUFF OF WEED...DO NOT PASS GO..STRAIGHT TO CRACK COCAINE! OMFG!

Sat, 01/12/2013 - 18:29 | 3147637 Atomizer
Atomizer's picture

[In future] Trillion-dollar Government Platinum Coin Ponzi scheme Masterminds Sentenced... Just look what happens to rebel terrorist who takes too much from the system’s GDP percentage. / LOL

Ponzi scheme mastermind sentenced|Ron Wilson was in federal court this afternoon.

Sat, 01/12/2013 - 18:52 | 3147639 FreeMktFisherMN
FreeMktFisherMN's picture

 The U.S. is, sadly, bankrupt. 

Fixed it.

(the strike through font wasn't working)

Sat, 01/12/2013 - 18:39 | 3147649 TraderTimm
TraderTimm's picture

Shame, I would've liked to see them do it - if only to speed the dollar's demise. Now we have to put the movie back on slomo-destructo-vision, each frame an incremental horror for those already enlightened.

 

Sat, 01/12/2013 - 18:42 | 3147653 DCon
DCon's picture

Weisenthal is looking for "coiners" to go drinking with tonight

 

Any NYC coiners, ping me.RT : I think 's going to need a stiff drink tonight.

 

Anyone, anyone?

 

Sat, 01/12/2013 - 18:46 | 3147660 AUD
AUD's picture

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.

Why not? The Fed currently accepts all sorts of worthless shit, including IOU's from the Treasury Department.

Sat, 01/12/2013 - 19:01 | 3147677 blindman
blindman's picture

the Japanese print to buy our treasuries for
gum's sake ! we wouldn't want that to stop.
would we?

Sat, 01/12/2013 - 21:32 | 3147935 blindman
blindman's picture

aud,
i heard they would not comment on a hypothetical? who
knows ? anyway. if they did accept it or were made to accept
it would they have to insure it and through whom and what
would that cost? and what if they lost it in say a boating
mishap? then what?

Sat, 01/12/2013 - 19:02 | 3147678 Atomizer
Atomizer's picture

 

 

The whole plan is to strategically kill off the US dollar. You’ll see the opposite unfold. Meanwhile, Electric Cars Must Make Noises Can Hear Under U.S. Rule 

That US ruling may ban rope and electric cars. The new electric car sound to alert pedestrians could end up as screams of desperation. /LOL

 

Try to keep up with the relentless propaganda efforts of MSM.

Sat, 01/12/2013 - 19:07 | 3147681 DCon
DCon's picture

reasonable! How are American kids who are off their head on Ritalin to be expected to look for cars before venturing onto the road? The car must screech to get through their drug riddled thoughts

 

Sat, 01/12/2013 - 19:10 | 3147682 q99x2
q99x2's picture

I think I get it now. The reason that we use the banksters crimminal banking system is because they will throw us into jail if we don't. They caused a revolution the last time they tried that. I'm tired of going fishing. Let's have a revolution. I'll walk around in a circle. You tell me when the banksters are gone.

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