Feds Go All-In on Politics Theater With Trillion-Dollar Gold coin, Fake Debt-Ceiling Fight

The feds will keep borrowing and spending until the entire Ponzi scheme collapses.

Have you heard the latest news upon the  fake debt-ceiling fight ?

The Senate provides approved a measure to kick the can later on a couple of months. So , the “ fight” will continue!

The $480 billion increase raises the debt restrict to $28. 9 trillion, but that’s only likely to last until Dec. several. That means we have time for more political theater. Yippee!

It’s so foolish because there’s a 100% opportunity that the debt ceiling is going to be raised.

In the mean time, Treasury Secretary Janet Yellen wants to just get rid of the debt ceiling altogether. That would be more honest. The whole concept is just a dog and horse show. This is what you get if you have a government completely untethered from any constitutional limitations. The feds literally believe they can do whatever they want

And they perform.

Or course, that costs  a great deal   of money. So , they are going to keep borrowing plus spending until the entire Ponzi scheme collapses.

And it really is a Ponzi scheme. I don’t think saying that can be hyperbole. If you think about it, the entire debt ceiling debate uncovers a dirty little key. If they don’t raise the credit limit, the government may have to default on its debt. So , what they’re saying is if we can’t sucker more people into lending all of us money, the people who currently lent us money usually are going to get paid back. We want new borrowing to pay for the borrowing. This is the definition of a Ponzi scheme.

But apparently, all of this is usually unnecessary. The solution has been generally there all along. They just have to mint a $1 trillion coin.

Now i am not kidding. This is a severe proposal being pushed simply by “ serious” people.

The idea is that the ALL OF US Treasury could just great a trillion-dollar platinum gold coin, deposit it at the Fed, and viola – debt problem solved. The US wouldn’t have to borrow any more cash. It would instantly have $1 trillion at its disposal.

I’m not necessarily certain why it needs to be a platinum coin though. After all, they could just write $1 trillion on a napkin having a green crayon and it will be just as legitimate. But I guess they have to do some things to conserve the illusion of propriety.

This goes to show how smart people can be really dumb. It’s like, they will outsmart themselves.

You do realize this is foolish, right?

It is a monetary disaster waiting to take place. It would put inflation upon hyperdrive. It’s really no different than what they did in Zimbabwe. We know how that proved helpful.

But we’re dealing with smart people here and they’ll tell you “ this really is different. ” They’ll offer all kinds of plausible reasons it is going to work. They’ll talk about the dollar being the book currency. They show you some convincing-looking accounting tautologies. The can babble and spin and suddenly you’ll be thinking, “ Hell yeah! A $1 trillion coin! That’s the solution. ”

No .

It’s not.

Supposedly, they can save this from being inflationary by simply dribbling the new money away as they need it. But this is the federal government we’re talking about right here. Do you really think politicians will be restrained with $1 trillion in the bank? And when these people blow through that, we can just mint another one of those puppies. So , they won’t little. It would create an even bigger cascade of spending.

Of course , the reality is we are going to already doing this. The Fed just creates money out of thin air every day, but the procedure is more indirect than minting a coin.

This is what you get when you have an entire school of economics that disconnects money from stuff. That’s the real problem right here. The government could create a $50 trillion coin. But it cannot create stuff.

We’ve been snowed into thinking money makes the economy move, but ultimately it comes right down to stuff.

And the Treasury can’t create stuff out of thin air. Uncle Sam  can’t mint cars plus food and clothing and commodities and oil and all of the other actual stuff we need. What goes on when you create more money with out creating more stuff? You get rising prices. That’s where we are today. We are viewing this play out. But again, we have people who exercise  zero self-reflection . They may be coming up with dumb ways to resolve problems they created in the first place.

Anyway, Now i am hungry. I’m a little brief on cash, so I think I’ll take a post-it note and write $10 onto it.   I’ll give it to the folks over at McDonald’s. I mean, if the government can do it, the reason why can’t I? I’ll tell you how it goes.

Fun on Friday is a weekly SchiffGold feature. I dig up a few of the off-the-wall  and off-beat stories relating to precious metals (however loosely) and share them with you – with tongue firmly planted in cheek. The views expressed are my own. These are 100% correct – however, not necessarily shared by anyone else here – which includes Peter Schiff.   Click  here   to read other posts in this particular series.

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