Few things have divided the nerdo-sphere and punditocracy as much as the proposal to dodge the debt ceiling by minting a trillion-dollar platinum coin and depositing it with the Federal Reserve.
As we make our arguments, it'd be nice if we didn't all join Fox News in beclowning ourselves in the process. Hence this guide.
Tags: Debt, Federal Reserve, Fox News, Money, Treasury Department
White House chief of staff Jack Lew is expected to be nominated as Secretary of the Treasury tomorrow, which is notable news for a few reasons.
As the highest-ranking Orthodox Jew in the federal government, Lew's nomination will let conservatives take a break from complaining about Chuck Hagel's supposed anti-semitism to complain about an actual Jew who's somehow part of Obama's shady efforts to enforce Sharia law. If we're very, very lucky, some right-wing moron will make a "hilarious" joke about Jews and money, and we'll get to play the "bigotry or satire?" game all over again.
Most importantly, by nominating a man whose signature would only be acceptable if he was an arm-less man named OooooooO, Obama is finally making good on the right-wing claim that he's debasing the currency:
Tags: Jack Lew, Money, Timothy Geithner, Treasury Department
Dear Ms. Manners,
I'm writing to settle a quibble between myself and a friend. Four years ago, my friend was in very bad shape. She was heading toward financial ruin, in fact, when I offered her a $182 billion loan. This past October my friend was able to pay me back in full, including interest. I'm not ashamed to say that I profited from this loan.
Last week, my friend sent me a thank-you note. I saw no need to send a thank-you note in return, as I was the one who did the initial favor. Unfortunately, I've since learned she is now considering a lawsuit against me because the terms of my loan were supposedly too harsh. Do you think she's doing this because I didn't send her a thank-you note as well? Please let me know who's in the wrong.
The United States Treasury Department
Tags: AIG, Money, Treasury Department
With the United States facing potential economic collapse in two months unless Congress authorizes a debt ceiling increase, one unorthodox suggestion has emerged as a solution to the crisis. Thanks to an obscure federal law, the Treasury may have the authority to mint platinum coins in any denomination it chooses.
So if the Treasury were to mint and deposit a platinum coin with a value of $1 trillion, the U.S. could continue to pay its obligations without Congressional action, which would be swell, because you know how Congress is about action.
Just one question remains: who should be on the face of America's second-silliest (next to the debt ceiling itself) experiment in fiscal management?
Tags: Debt, Economy, Money, Treasury Department