Comments on: Ezra Klein Has A Magic Solution to the Debt Ceiling “Crisis”, but the Politics Make Him Sad. http://www.sundriesshack.com/2011/07/30/ezra-klein-has-a-magic-solution-to-the-debt-ceiling-crisis-but-the-politics-make-him-sad/ Delivering the Best of the New Media Since 2004. Sat, 26 May 2012 07:05:18 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: “If I were a member of the professional left, I would be stoked.” - The NeoSexisthttp://www.sundriesshack.com/2011/07/30/ezra-klein-has-a-magic-solution-to-the-debt-ceiling-crisis-but-the-politics-make-him-sad/comment-page-1/#comment-704057 “If I were a member of the professional left, I would be stoked.” - The NeoSexist Thu, 18 Aug 2011 17:16:59 +0000 http://www.sundriesshack.com/?p=16515#comment-704057 [...] and this and this And This and this and this and this and this and this and this and this and this and this and this and this and [...] [...] and this and this And This and this and this and this and this and this and this and this and this and this and this and this and [...]

]]> By: noirhttp://www.sundriesshack.com/2011/07/30/ezra-klein-has-a-magic-solution-to-the-debt-ceiling-crisis-but-the-politics-make-him-sad/comment-page-1/#comment-703911 noir Tue, 02 Aug 2011 11:46:30 +0000 http://www.sundriesshack.com/?p=16515#comment-703911 Leaving aside the political stupidity, there is one more teeny weenie little problem, the supply of cash (paper or coin) is demand driven. Until cash is bought, its worth is simply that of the paper or metal used to make it. Conceivably the central bank could buy it and hold it as an asset while crediting Treasury's account, however, this is called printing money and is massively inflationary (think Zimbabwe). Alternatively the public buys cash directly from Government, or indirectly via the central bank, However, the public only wants to hold cash to make payments and the demand for that cash is not going to magically rise just because the Government prints more. Finally, while holding cash or debt is in fact holding a promise by the Government to pay you at some future point with, wait for it, cash, only the terminally stupid invest in zero interest paying cash rather than interest paying debt. Leaving aside the political stupidity, there is one more teeny weenie little problem, the supply of cash (paper or coin) is demand driven. Until cash is bought, its worth is simply that of the paper or metal used to make it. Conceivably the central bank could buy it and hold it as an asset while crediting Treasury's account, however, this is called printing money and is massively inflationary (think Zimbabwe).

Alternatively the public buys cash directly from Government, or indirectly via the central bank, However, the public only wants to hold cash to make payments and the demand for that cash is not going to magically rise just because the Government prints more.

Finally, while holding cash or debt is in fact holding a promise by the Government to pay you at some future point with, wait for it, cash, only the terminally stupid invest in zero interest paying cash rather than interest paying debt.

]]> By: Huh?http://www.sundriesshack.com/2011/07/30/ezra-klein-has-a-magic-solution-to-the-debt-ceiling-crisis-but-the-politics-make-him-sad/comment-page-1/#comment-703864 Huh? Sun, 31 Jul 2011 16:11:38 +0000 http://www.sundriesshack.com/?p=16515#comment-703864 So what happens when the Chinese ask if they can have change for the snack machine? So what happens when the Chinese ask if they can have change for the snack machine?

]]> By: Ocean’s Eleventy!http://www.sundriesshack.com/2011/07/30/ezra-klein-has-a-magic-solution-to-the-debt-ceiling-crisis-but-the-politics-make-him-sad/comment-page-1/#comment-703853 Ocean’s Eleventy! Sun, 31 Jul 2011 00:47:06 +0000 http://www.sundriesshack.com/?p=16515#comment-703853 [...] Jimmie Bise has fun bashing Ezra Klein over the dumbest idea yet for “fixing” the debt c...: Here’s the rough outline of Klein’s scheme. We have laws that limit how much paper money we can circulate and how much coinage we can mint that is made from gold, silver, and copper. However, there is another law that allows the Treasury to mint platinum coins in any number and assign any value to them the Secretary of the Treasury sees fit. He needs no permission from anyone but the President, his boss, to do that. So, the plan would be to mint two platinum coins over which Tim Geithner would wave his Magic Wand of Treasuriness after which they would be worth one trillion dollars each. The Federal Reserve would give the coins to the Treasury, who would deposit them in their accounts and — hey presto! — we’ll have two trillion dollars to spend right away. No need to raise the debt limit, because this “money” wouldn’t be debt. It would be “real money” that the Obama administration could plow into more successful programs like the Vote Buying Act Stimulus Bill, Cash for Clunkers, or the auto maker bailouts. [...] [...] Jimmie Bise has fun bashing Ezra Klein over the dumbest idea yet for “fixing” the debt c…: Here’s the rough outline of Klein’s scheme. We have laws that limit how much paper money we can circulate and how much coinage we can mint that is made from gold, silver, and copper. However, there is another law that allows the Treasury to mint platinum coins in any number and assign any value to them the Secretary of the Treasury sees fit. He needs no permission from anyone but the President, his boss, to do that. So, the plan would be to mint two platinum coins over which Tim Geithner would wave his Magic Wand of Treasuriness after which they would be worth one trillion dollars each. The Federal Reserve would give the coins to the Treasury, who would deposit them in their accounts and — hey presto! — we’ll have two trillion dollars to spend right away. No need to raise the debt limit, because this “money” wouldn’t be debt. It would be “real money” that the Obama administration could plow into more successful programs like the Vote Buying Act Stimulus Bill, Cash for Clunkers, or the auto maker bailouts. [...]

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