During the nascent years following the initial implosion caused by what we now term “The Great Financial Crisis.” There were more monetary schemes being propelled as “Genius!” that would make Charles Ponzi envious. The tying thread that ran through all of them was the same one that runs through all ponzi schemes aka: confidence.
Here’s the issue that far too many just haven’t a clue in regards to money, value et cetera.
Once President Nixon severed the $Dollar from its gold tether (August 1971) – every single $Dollar, and in conjunction, every single thing whether it be a tangible item (think: hard goods) or intangible (think: bonds and services) is based purely on and in one thing: the confidence that the $Dollar is not just worth its stated value today, but rather, will be worth at least the same to another party tomorrow.
Repeat: The only thing that tethers that assumption today is – an assumption for confidence. Period, full stop.
Since that period of time there have been more schemes to pay for this and that than there is digital ink to list. However, what should now be assumed, much like the confidence in the assumption, is that things are going to be stretched far further than anyone ever imagined.
Today, you are now seeing the open calls for direct socialistic styled interventionism everywhere. The only question, so far, has been: “How to pay for it?
Now? Who cares about this thing once called “pay.” All one needs to do is “print!” After-all, the “educated” will tout: “That’s all we’ve been doing for 50 years anyway! What we need to do is just go bigger, bolder! Then, we’ll finally be free of any and all of those capitalistic arguments.”
In other words: All one needs to do is fully embrace the lunacy of academia and the magic-money-tree theory known and professed (and taught) as MMT (Modern Monetary Theory) and sha-zam! I get a pony, you get a pony, we all get ponies!!! And much, much more.
However, all the dreams of the complete socialistic takeover from many in both academia and beyond ran into a snag. i.e., It seems doing it via any sort of rules put forth in the Constitution are far too onerous for this bunch, and the wheels are spinning on just how to (once again) get around it.
The issue here is, I think, they’re about to truly employ the “nuclear option” that will make the other one known as “reconciliation” look like a firecracker in comparison.
Back in 2013 the one and only Paul Krugman argued that it would be a great idea for the U.S. Treasury to mint a few $Trillion Dollar coins, put them into a vault somewhere (i.e., Fort Knox et. al.) and Sha-zam! No more debt, easy-peasy. If you need to spend more, print more!
At the time myself and others took this goof-balled, idiotic, economic absurdity to task and subsequently both the idea, as well as Mr. Krugman, seemed to crawl back into the rabbit-hole of economic lunacy he and his ilk scurried out from. (Paging Mr. Stiglitz, anyone? Bueller?)
However, with that all said for a bit of background, just like that famous line out of the movie “Poltergeist II: The Other Side (1986)” regarding the lunacy of those $Trillion Dollar coins: “They’re b-a-a-a-ck!”
Over at the heavily politically read, as well as topic influenced website Axios™, the latest story flashed across my screens: “The coin that could avert a federal debt default”
In my view – both the timing and subject matter of this truly lunatic idea is something that should not be dismissed. Here’s why…
Regardless of your political party affiliation or persuasion, I’d like for you to answer the following…
With what you’ve witnessed in regards to the latest machinations via the current administration, where both the president and members of his cabinet and congress are touting that a $3.5 Trillion Dollar spending spree has an actual $0 cost associated with it.
Do you think it’s crazy talk to think they would not begin to flout the idea that all that “crazy talk” was actually now backed up by the sheer lunacy that a $Trillion Dollar coin not only solves the dilemma, but in addition, its efficacy is both backed by Nobel Prize winning economists and more? Who can argue against such brilliance, right? Right?
I believe it’s not only plausible, but now is far more probable this lunacy is coming to every form of media, en masse, to propel its “Genius!” So much so, you’re going to begin hearing it at decibels so loud, it will be ear-shattering as well as relentless.
Yet, that will be mere background noise to the shattering of confidence in anything resembling a sound currency and government should the idea take hold with calls for implementation.
Albeit, there is one far more scary wild-card item in all of it, and it is this…
Do you also think it is near impossible to wake up one morning, much like many did in 1971, to find that this president has done the “unthinkable” as another did 50 years ago? i.e., “I have instructed the Department of The Treasury…”
Think about it.
Doesn’t mean it will happen, I’m just asking the question.
So should you.
© 2021 Mark St.Cyr
Addendum: I mean, really, if this was possible than why hasn’t all this lunacy worked for Zimbabwe when they went to printing $100 Trillion dollar notes? Oh right, it has to do with that lunacy aspect, but lunacy today is the new “Genius!” Sorry, I forgot.