Friday, June 29, 2012

The Trillion Dollar Coin, Part III

"President Obama could do this by announcing a NGDP level target that would be implemented by the Treasury Department creating large-denomination platinum coins that would be deposited at the Fed and used to fund checks to the public.  The Treasury Department would keep making these coins until the the NGDP level target was hit.  If NGDP went above the target the Treasury Department would issue bonds to withdraw the excess money."
 --http://macromarketmusings.blogspot.com/2012/04/obama-needs-his-fdr-moment.html

This is still a really stupid idea, but an interesting idea would be to issue lower value coins, say $1 million platinum coins.  And instead of just depositing them with the Fed, how about having a lottery and give 1 million of these away at random?  They could be redeemed at the Fed, and have taxes taken out at that point.  Some of the coins wouldn't be redeemed at all, as some collectors would want them.

That is a better idea than the trillion dollar coin.

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