This page has been archived and commenting is disabled.

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.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
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.

Sat, 01/12/2013 - 19:09 | 3147684 blindman
blindman's picture

today j. rickards likened the trolling coin idea
to shoving a stick into the eye of the american
saver. we already have one eye with a stick in it;
that would be two sticks in two eyes, that is at least
one stick too many. here are/is the link ...
.
Jim Rickards on the 1 tr. coin hoax… Excellent (audio)
Posted on January 12, 2013 by maxkeiser
http://maxkeiser.com/2013/01/12/jim-rickards-on-the-1-tr-coin-idea-excel...
.
khq on the street .. what is really going on?
http://www.khq.com/category/195686/video-landing-page?autoStart=true&top...

Sat, 01/12/2013 - 19:20 | 3147694 joego1
joego1's picture

I dated a girl named Moni Zation once. She would fuck ya then steal your wallet.

Sat, 01/12/2013 - 19:28 | 3147702 besnook
besnook's picture

the fed and treasury don't have a sense of humor. the trillion dollar coin is too close a reality to the fantasy fiat they are perping.

Sat, 01/12/2013 - 19:29 | 3147706 DavosSherman
DavosSherman's picture

Gee.  Really?  I'm just soooo fucking shocked.  Turbo Tax Cheating Timmy Geithner, former Fed NY President, keeper of the Bankster and Jack Dickead Citi Derivative Bankster Lew.

Hoooooocudanode?

Sat, 01/12/2013 - 19:31 | 3147710 Lloyd_Xmas
Lloyd_Xmas's picture

Damn, I wanted a new paper weight,  GUess I'll have to continue using my stack of $100's

Sat, 01/12/2013 - 19:38 | 3147725 jules from aus
jules from aus's picture

watching america, as we must, and it is a sad and unfortunate aspect that we must also waste our time watching non-'issues' like this ridiculous coin farce..

one thing is certain, the american financial press sure can get people distracted and talking about absolute and irrlelvant shit, and often... what department in your government, or fed, cooks up this shit? and why do you all insist on eating it? and to those annoyed at my lumping you in on this general criticism, you should see as this external viewer does, the national absorption and time wasted by the detractors and those who seek to put a bullet between the eyes of these non-'issues' from the outset.. even the time in 'debate' pointing out how stoopid these types of stories are, beggars belief.. but that's just america.. it just has to fucking talk and talk and talk, while we of the rest of the world can only once again, shake our heads.. instead, use of the following is recommended: 'that's a fucking stupid idea, and don't fucking waste our time with such rubbish.. let's perhaps stay focussed on the corruption of our leadership, yes?' .. we, of the english common law system, have found that rooting out corruption to be a quite excellent cure, that prevents much unnecessary griping..

good luck, because you sure as hell need it...

p.s. you are no longer truly leaders of the world, but instead mostly a nation of those being lead down the garden path.. think Alice in Wonderland, and chasing insane rabbits...

Sat, 01/12/2013 - 19:51 | 3147744 Getting Old Sucks
Getting Old Sucks's picture

So the FED, who produces fake money doesn't want to be repaid for their fake money with fake money?  What's fair about that?  Perhaps this is their way to get all the gold in Ft Knox?  If there is any.....

 

Hey Bernanke!  If You Can Make, So Can We, ASSHOLE!

Sat, 01/12/2013 - 19:47 | 3147745 Quinvarius
Quinvarius's picture

So the Fed won't accept American money?  Now I want this coing to be minted and deposited out of sheer anger!

Sat, 01/12/2013 - 20:18 | 3147816 Acidtest Dummy
Acidtest Dummy's picture

No point in good money chasing bad. Pt will always have value.

Sun, 01/13/2013 - 11:52 | 3148705 unununium
unununium's picture

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

It may be a bad idea, but if the United States of America decides to coin lawful money you bet your god damned quasi-legal, system destroying, wealth confiscating, incentive wrecking, capital annihilating, wrong predicting, bad paper buying, lying, cheating, stealing, inflation producing, job vaporizing, masses controlling, winner choosing, loser choosing,

unaudited,

Congress-misleading, won't-raise-rates-for-2-years, will-gladly-raise-rates-in-15-minutes, lip quivering, won't print money, will print money, rotten stinking enemy of the people ass you would accept it, Fed.

 

Sat, 01/12/2013 - 19:50 | 3147757 Pumpkin
Pumpkin's picture

Anyone who didn't see this coming is a fool.  The treasury robbing the fed of a one trillion dollar loan?  Ain't gonna happen.  It goes against the entire purpose of the scheme. I got their number though.  Wait and see.  It'sa comming.

Sat, 01/12/2013 - 19:54 | 3147768 blindman
blindman's picture

"...Hitler began a national credit program by devising a plan of public works that included flood control, repair of public buildings and private residences, and construction of new roads, bridges, canals, and port facilities. All these were paid for with money that no longer came from the private international bankers.

The projected cost of these various programs was fixed at one billion units of the national currency. To pay for this, the German government (not the international bankers) issued bills of exchange, called Labor Treasury Certificates. In this way the National Socialists put millions of people to work, and paid them with Treasury Certificates.

Under the National Socialists, Germany’s money wasn't backed by gold (which was owned by the international bankers). It was essentially a receipt for labor and materials delivered to the government. Hitler said, "For every mark issued, we required the equivalent of a mark's worth of work done, or goods produced." The government paid workers in Certificates. Workers spent those Certificates on other goods and services, thus creating more jobs for more people. In this way the German people climbed out of the crushing debt imposed on them by the international bankers.

Within two years, the unemployment problem had been solved, and Germany was back on its feet. It had a solid, stable currency, with no debt, and no inflation, at a time when millions of people in the United States and other Western countries (controlled by international bankers) were still out of work. Within five years, Germany went from the poorest nation in Europe to the richest.
" ....
How Hitler defied the bankers
Submitted by Abdul Alhazred on Fri, 2008-05-09 19:58

http://wakeupfromyourslumber.com/node/6720

Sat, 01/12/2013 - 21:17 | 3147912 besnook
besnook's picture

now you understand the real reason for the second world war....and why the rothchilds' bank of england(and fed) had to stop the crazy, genocidal hitler from killing all the jews(the reason a lot of americans think the war was about). the real reason the jews were rounded up is on the internet tubes somewhere, also.

Sun, 01/13/2013 - 02:16 | 3148368 blindman
blindman's picture

"..
Germany's economic freedom was short-lived; but it left several monuments, including the famous Autobahn, the world's first extensive superhighway.
Hjalmar Schacht, a Rothschild agent who was temporarily head of the German central bank, summed it up thus… An American banker had commented, "Dr. Schacht, you should come to America. We've lots of money and that's real banking." Schacht replied, "You should come to Berlin. We don't have money. That's real banking."

(Schact, the Rothschild agent, actually supported the private international bankers against Germany, and was rewarded by having all charges against him dropped at the Nuremberg trials.)

This economic freedom made Hitler extremely popular with the German people. Germany was rescued from English economic theory, which says that all currency must be borrowed against the gold owned by a private and secretive banking cartel -- such as the Federal Reserve, or the Central Bank of Europe -- rather than issued by the government for the benefit of the people.

Canadian researcher Dr. Henry Makow (who is Jewish himself) says the main reason why the bankers arranged for a world war against Germany was that Hitler sidestepped the bankers by creating his own money, thereby freeing the German people. Worse, this freedom and prosperity threatened to spread to other nations. Hitler had to be stopped!
Makow quotes from the 1938 interrogation of C. G. Rakovsky, one of the founders of Soviet Bolsevism and a Trotsky intimate. Rakovsky was tried in show trials in the USSR under Stalin. According to Rakovsky, Hitler was at first funded by the international bankers, through the bankers’ agent Hjalmar Schacht. The bankers financed Hitler in order to control Stalin, who had usurped power from their agent Trotsky. Then Hitler became an even bigger threat than Stalin when Hitler started printing his own money.
(Stalin came to power in 1922, which was eleven years before Hitler came to power.)
Rakovsky said:
“Hitler took over the privilege of manufacturing money, and not only physical moneys, but also financial ones. He took over the machinery of falsification and put it to work for the benefit of the people. Can you possibly imagine what would have come if this had infected a number of other states?” (Henry Makow, "Hitler Did Not Want War," www.savethemales.com March 21, 2004).
" ....

Sat, 01/12/2013 - 20:21 | 3147828 Pareto
Pareto's picture

Thats really the problem isn't it?  The media in all its uneducated and uninformed wisdom, is complicit in all this stupid crap symbolic of a kind of desperation that only unaccountable ass clowns could ever dream of, that "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.  

But, they'll think of more sensational retarded shit that will pit people (countries) against each other to keep the distraction alive; keep people distracted from recognizing who and what the real problem is.  The only problem I have of course, is how is the Trillion dollar coin is any more insane than the the FED's current monetary policy of creating money out of thin air, then buying the government's paper with it?  With both FED and Treasury responding officially to the lunacy of the Trillion dollar coin, it unfortunately has the desired effect of minimizing and distracting people away from their FED and Treasury's own current ponzi.  In this context, there is not even the possibility that both are wrong and immoral.

Sat, 01/12/2013 - 20:25 | 3147835 working class dog
working class dog's picture

THE FED JUST PROVED WHAT THE CREATURE FROM JEKYLL ISLAND BOOK IS ALL ABOUT, the scum bag corporate financial cartel of the Fed and member banks and the gubbament along with many many international banks and large corporations,

the feed bag would be pulled away if the fed lost control of the money supply. End the Fed and go back to constitutional money.

Sat, 01/12/2013 - 21:11 | 3147903 bilejones
bilejones's picture

The Bernank as a boy: http://i.imgur.com/XaiUx.gif

Sat, 01/12/2013 - 21:24 | 3147923 blindman
blindman's picture

Chubby Checker - Let's Twist Again - 60's
http://www.youtube.com/watch?v=pgmnQteWAmA&feature=youtu.be
.
dee dee sharp - mashed potato time
http://www.youtube.com/watch?v=mQBKpV9emKc&feature=youtu.be

Sat, 01/12/2013 - 21:30 | 3147929 H E D G E H O G
H E D G E H O G's picture

i don't think the Chinese would think too highly of the US defaulting on the debt with $300 + billion dollars of worthless bonds/dollars/treasuries sitting in their Ming jars. the poor, downtrodden youth of amerika would have to go to war AGAIN to save the military industrial/banker/ malfeasant governments ass for the umteenth fucking time in our most glorious history.

Sat, 01/12/2013 - 21:39 | 3147941 blindman
blindman's picture

The Tokens - The Lion Sleeps Tonight
http://www.youtube.com/watch?v=_LBmUwi6mEo&feature=youtu.be
.
eeee eeede eee wee eeee weee um um ba waaaaaaaaaaayyyy.
.
" in the jungle, the quiet jungle
the lion sleeps tonight .."

Sat, 01/12/2013 - 21:57 | 3147961 Catullus
Catullus's picture

As I said before: if I were a primary dealer, I'd scream down the trillion dollar coin idea. Once you realize you can do this, why bother with treasury auctions? And then why bother with collecting taxes? The Fed and the Treasury know this make them both worthless.

Sat, 01/12/2013 - 22:03 | 3147973 Dre4dwolf
Dre4dwolf's picture

I like how the Fed wont accept a Platinum coin, but they expect us to accept their worthless paper.

 

WTF IS WRONG WITH THE WORLD, WHY IS EVERYTHING ASS-BACKWARDS? 0o

Sat, 01/12/2013 - 22:10 | 3147985 Bansters-in-my-...
Bansters-in-my- feces's picture

Did Ben tell Timmy he only accepts gold coins for tradition,not platinum.?

Sat, 01/12/2013 - 22:18 | 3147997 Bullish Bear
Bullish Bear's picture

Can we make Geithner eat the trillion dollar twinkie on his way out?

http://wh.gov/PPzg
Sat, 01/12/2013 - 22:41 | 3148035 bugs_
bugs_'s picture

The problem was suggesting they make the coin out of platinum.

So do over, make the coin out of......ZINC....or styrofoam

Sat, 01/12/2013 - 22:47 | 3148046 El Hosel
El Hosel's picture

We can't have the Treasury and the Fed creating money out of thin air, that kind of "gimmickery" won't fly...

The Fed will just have to create "mo faster".

Sat, 01/12/2013 - 23:19 | 3148115 palmereldritch
palmereldritch's picture

I think the bigger story here is not the red herring of debt ceiling but the FED's refusal to accept the authority of the Treasury's coin seigniorage as payment establishing the precedent of removing Congress' ability to completely extinguish that private bank's debt over the people by such a mechanism.

From an interview with Ellen Brown, webofdebt.com December 9, 2008

[Brown]: In fact I read somebody's opinion, I think it was somebody from the Mint said that you could solve the whole problem by printing, or stamping, ten one-trillion-dollar coins, I mean today, that's what it would be, and then just pay off the debt with these ten trillion dollars worth of coins. Because there's no, it doesn't say in the Constitution what the face value of these coins would be.

[Thom]: Oh, that's amazing! Now, let me just wrap my brain around that for a minute. Here's the, the reason, just to back up a little bit. The reason that the US mint is making coins, and not the Federal Reserve Bank, and the reason why our coins don't say Federal Reserve pennies, they say actually US money, is because our coinage, the Constitution says that the federal government has the exclusive right to manufacture coins.

[Brown]: It says, yeah, Congress shall have the power to coin money, and that's all it says about creating money.

[Thom]: Right.

[Brown]: It doesn't say who has the power to print money or to create, obviously, electronic money, or all those forms that we use today.

[Thom]: Right, so what the Fed has done, is it's said, 'okay, government, you guys are in charge of pennies, nickels, dimes and quarters'.

[Brown]: Correct.

[Thom]: 'And we're in charge of dollar bills on up'.

[Brown]: Correct.

[Thom]: And so the Treasury Department could simply say, 'okay, we're gonna start making hundred dollar coins, thousand dollar coins, million dollar coins and by the way we'll make a trillion dollar coin, and with ten of these coins which we will print, we will buy the Fed', do I have that right?

[Brown]: Right. Well, you don't even need to buy the Fed; it's in the Federal Reserve Act that Congress could just vote to nationalize it, I mean.

[Thom]: It's in the Act?

[Brown]: Well, the last provision of the Act is that it can be modified by Congress at any time.

[Thom]: Right.

[Brown]: So they, yeah, I mean, they gave it the power, they could take back the power.

[Thom]: Sure. So, what would be the practical effect of the Treasury Department saying, 'okay, the Federal Reserve, the Federal Reserve, which is a private corporation which is creating and controlling our money supply is no longer a private corporation, it's now part of the Department of the Treasury. We're going to buy it from its investors, we'll pay whatever the price is, and now we own it'? What, how does that accrue value to you and me?

[Brown]: Well, right now, the Federal Reserve has always bought Federal debt but they haven't been so obvious about it. But right now, right on their books they're stating that they're buying a certain amount of US debt. So, what you have is the government printing these IOUs and then the Federal Reserve printing money and trading it for the IOUs and then we owe the Federal Reserve the money plus interest. Well, if it was our Federal Reserve we wouldn't need to print debt, we could just print money, which is what our debt really is.

[Thom]: But that would immediately inflate our currency, wouldn't it, and decrease the value of it?

[Brown]: No, because what you would do is you would print the dollars instead of the debt. In other words, you would rip up the bonds.

[Thom]: Right.

[Brown]: So you would print, every time a bond issue came due, you would print the dollars and pay off the bond issue, as they always do, or they put it into accounts.

[Thom]: Right.

[Brown]: But you would rip up the bonds instead of rolling them over. Now what we do is we roll them over and then because nobody else wants our debt, you know, less and less do other people want our debt, the Fed is more and more stepping in to buy the debt.

[Thom]: Right, I mean there's one speculation that one of the reasons the Fed is buying so much federal debt right now is because the Chinese aren't.

[Brown]: Correct.

[Thom]: But if, but still it seems that this is the Zimbabwe solution. I mean, if a government just prints money; if they say, 'okay, we're going to build a highway infrastructure and we're going to print the money to build it', if, they're increasing the number of dollars in circulation, but they're not increasing the net wealth, so they're decreasing the value of the currency and you would have inflation, would you not?. Although we're going to anyway, by creating money with debt.

[Brown]: Right, when the Federal Reserve buys it, it's more inflationary because the Federal Reserve keeps the bonds and then they leverage those bonds.

[Thom]: Because they leverage it.

[Brown]: Yeah, then they use them as the reserves for ten times that sum in loans.

[Thom]: Right, so the Federal Reserve takes all the dollars that are created by creation of debt at the Fed and multiplies them by ten. And if the Treasury did it, it would be multiplied by one. So it would be one tenth as inflationary, is that what you're saying?

[Brown]: Well, I don't think it would be multiplied at all because you would rip up the bonds, and the bonds themselves are the basis of our entire money supply. Those are the reserves from which our money is created.

[Thom]: Right, so let's just nationalize the Fed. Now we've got to get some senators on board on this,

Sat, 01/12/2013 - 23:42 | 3148154 pvzh
pvzh'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.
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.

"Never believe anything until it is officially denied" (James "Jim" Hacker). Now, I am really worried.

Sun, 01/13/2013 - 00:39 | 3148255 Dre4dwolf
Dre4dwolf's picture

Can someone explain to me, what the difference is between printing 16 Trillion Dollars on paper or Digital Bits, and Printing 16 trillion Dollars on the back of a Metal Coin?

 

So- Far the only difference I can see is ... who is doing the printing.

 

Sun, 01/13/2013 - 16:05 | 3149224 blindman
blindman's picture

one is an asset of questionable value, priced
by decree of the sovereign(allegedly, if you
accept that the treasury is part of the government
of the people of the u.s.a.) ; the other is debt
held on the books of the fed to be paid back with
interest. i think that is it. it is like in
ghost busters where they say "don't cross the streams"
to take out the giant marshmallow man....and then they say ..
cross the streams! funny movie

Sun, 01/13/2013 - 00:41 | 3148261 Bunga Bunga
Bunga Bunga's picture

If Treasury and Fed abandon the platinum bullet idea, why not make it into law? 

Why it took them so long to say that? Looks like they seriously thought about it.

Greg Walden, please proceed, your bill is backed by Treasury and Fed now.

 

 

 

 

 

Sun, 01/13/2013 - 02:31 | 3148343 cranky-old-geezer
cranky-old-geezer's picture

 

 

Well, well, well, looks like COG 1, Krugman / MSM 0.

(And my analysis was better than any article on ZH)

In a way I wish they had done it.  It would have been instant collapse of the Fed and FRN, what we've all been wanting.

Instead we'll get slow boring collapse of the Fed and FRN.   Buying worthless MBS and govt debt isn't much better than some "trillion dollar coin".  Both are bullshit.

Sun, 01/13/2013 - 11:43 | 3148712 andrewp111
andrewp111's picture

No. It would have been an instant collapse in interest rates to true zero or negative levels. It would cut out the Primary Dealers, and the Banksters would be fucked.  I wouldn't go by their pronouncements, though.  This is a bargaining position. They don't want to give the Republicans an easy out by minting TDC's. In the end, they might still do it if they get desperate enough.

Sun, 01/13/2013 - 02:17 | 3148371 MrButtoMcFarty
MrButtoMcFarty's picture

Obama was NEVER going to fuck his bankster masters with some bullshit coin.

The fact that Krugman actually endorsed the idea should immediately place him on the level of those barking fucks on CNBC....Kernan and that booyhah asshole....

 

Goddamn....this shit is getting stupid.

Sun, 01/13/2013 - 06:52 | 3148526 tradewithdave
tradewithdave's picture

It never was about the amount of the coin, but it most definitely IS about the accrual of seigniorage and the implementation of a "4th branch" of governmental monetary oversight that will function within a closed loop "triple entry accounting"/momentum accounting model. 

 

http://tradewithdave.com/?p=14813

http://tradewithdave.com/?p=14702

http://tradewithdave.com/?p=14637

 

Sun, 01/13/2013 - 12:08 | 3148769 Sigep0612
Sigep0612's picture

In August 1993, Hillary Clinton suggested "Universal Health Care."   Everyone said it would never happen.   Politicians plant the seed.  Sometimes the thought dies as absurdity AT THAT TIME.  A few years later, the thought is resurrected and voila it's not so bizarre. 

Watch this one around 2016. 

Sun, 01/13/2013 - 17:57 | 3149389 Acidtest Dummy
Acidtest Dummy's picture

First they ignore you, then they laugh at you, then they fight you, then you win. We may have just passed the 'laugh at you' stage of the TDC. Next time around, the republicans will propose the TDC (by then the QDC) and the democrats will fight it.

Sun, 01/13/2013 - 15:22 | 3149143 Tunga
Tunga's picture

Tunga long Amerio's. 

Sun, 01/13/2013 - 20:17 | 3149566 devo
devo's picture

"Instead they will be minting a trillon dollar osmium coin."

Mon, 01/14/2013 - 12:40 | 3150823 monad
monad's picture

The coin was a decoy story to distract the sheep from real, nasty news. 

Do NOT follow this link or you will be banned from the site!