Paul Krugman Says Mint The Trillion Dollar Coin

I have already written about why the trillion dollar coin is a stupid idea. Paul Krugman seems to think this idea is silly, but is better than the alternative in the even of impending default:

Should President Obama be willing to print a $1 trillion platinum coin if Republicans try to force America into default? Yes, absolutely. He will, after all, be faced with a choice between two alternatives: one that’s silly but benign, the other that’s equally silly but both vile and disastrous. The decision should be obvious…

…It’s easy to make sententious remarks to the effect that we shouldn’t look for gimmicks, we should sit down like serious people and deal with our problems realistically. That may sound reasonable — if you’ve been living in a cave for the past four years.Given the realities of our political situation, and in particular the mixture of ruthlessness and craziness that now characterizes House Republicans, it’s just ridiculous — far more ridiculous than the notion of the coin.

So if the 14th amendment solution — simply declaring that the debt ceiling is unconstitutional — isn’t workable, go with the coin.

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2 Responses to Paul Krugman Says Mint The Trillion Dollar Coin

  1. thedrpete says:

    There is so much that so many just know to beb true that just ain’t so. President Obama says raising taxes on the top 2% will generate an additional $600 billion.

    In fact — even according to his former head of his council of financial advisors, Christine Romer — raising the tax rate on top earners from 35% to 39.6% will likely REDUCE revenues to the Treasury from those folks by hundreds of bil per year. The now POTUSadmitted he knew that back in April 2008, but to the economics illiterati demagoguery sells.

    The $trillion coin will have no-nil-nada-zero-zip-zilch effect on America’s debt other than reducing future wealth through inflating the dollar. The sole way to save America is to cut the national government — what it is, does, and spends — by about 80%. The would be what was needed to return to constitutionality.

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