Zimbabwe Ben, meet Zimbabwe Timmy

December 8, 2012
By

It turns out that Ben Bernanke isn’t the only one with the unlimited power to print infinite amounts of money.

Timmy the Tax Cheat has a little legal clause that allows him to make platinum coins in whatever insane denominations he imagines.  Trillion?  Heck, why not go for googolplex?

WaPo:

Thanks to an odd loophole in current law, the U.S. Treasury is
technically allowed to mint as many coins made of platinum as it wants
and can assign them whatever value it pleases.

Under this scenario, the U.S. Mint would produce (say) a pair of
trillion-dollar platinum coins. The president orders the coins to be
deposited at the Federal Reserve. The Fed then moves this money into
Treasury’s accounts. And just like that, Treasury suddenly has an extra
$2 trillion to pay off its obligations for the next two years — without
needing to issue new debt. The ceiling is no longer an issue.

Yeah, the ceiling is no longer an issue. The fact that the U.S. is still running trillion-dollar deficits and printing money out of thin air to fund them? Kinda still an issue.

Congress created this monster in 1996 with the following:

 (k) The Secretary may mint and issue platinum bullion coins and proof platinum coins in accordance with such specifications, designs, varieties, quantities, denominations, and inscriptions as the Secretary, in the Secretary’s discretion, may prescribe from time to time.

Ostensibly, this was an oversight and they thought they were just giving Treasury the power to make commemorative coins for sale for a few hundred or thousand bucks, and they never intended to let Timmy go Full Zimbabwe.  Cynics might say the bill’s author knew exactly what he was doing.

Back to WaPo:

“I like it,” says Joseph Gagnon of the Peterson Institute for
International Economics. “There’s nothing that’s obviously economically
problematic about it.”

In theory, this is much like having the central bank print money.
But, says Gagnon, the U.S. government would simply be using the money to
keep spending at existing levels, so it wouldn’t create any extra
inflation.

Joseph Gagnon of the Peterson Institute for International Economics has shit for brains. Running 7% GDP deficits and printing the money out of thin air “wouldn’t create any extra inflation?”  How does that work, Joe?

If it’s not clear to you yet that the dollar is a complete farce and is grounded in absolutely nothing, you’re not paying attention.  Have you seen your gold dealer recently?

Is minting trillion-dollar platinum coins insane?  Of course it is.  But so is our current debt crisis.  And with every passing trillion spent, any remaining sane exit strategies are increasingly closed off.  And the Washington Post, a favored mouthpiece of the regime, has been flogging this idea for more than a year, so it’s obviously a trial balloon the regime wants to keep floating.

The least painful way out of our current debt crisis would be a combination of austerity and devaluation: Boner and Barry agreeing to serious entitlement reforms and spending cuts and some tax increases, and monetization of existing debt via platinum seigniorage or the Dirty Fed just forgiving debt or maintaining a permanently huge balance sheet. But neither Boner nor Barry want austerity, so we’ll get more devaluation instead.

The dollar has already been massively devalued by Obama’s reckless spending and the Dirty Fed’s enabling monetization.  You just haven’t seen most of it yet in consumer prices because people are still afraid to spend.

12 Responses to Zimbabwe Ben, meet Zimbabwe Timmy

  1. allie on December 8, 2012 at 8:14 am

    This is insane. No wonder voters with at least half a brain (unlike Obama voters who are brain dead) have to wonder who the brainiac was that proposed this and why anyone would be so dumb as to vote for it. If I remember correctly republicans controlled the congress and Clinton was president. Doesn’t say much for their smarts now does it???

    Pretty soon just to buy a loaf of bread we will have to take a wheelbarrow filled with money to pay for it. As Washington becomes more and more remote and destructive more people will opt for the underground economy to keep the government hands off what little income people have. We are now living in the age of government tyranny. Time to change the government as our founding fathers warned us could happen.

  2. Setnaffa on December 8, 2012 at 8:23 am

    We the People elected the evil ba… citizens… who passed this farce. It’s our fault.

    We got the government we well and truly deserve.

    Shame on us.

  3. artist on December 8, 2012 at 8:33 am

    We just added $300 BILLION to our national debt in 61 days.

    61 days.

    300 *BILLION*.

    Spending is UP 14% over FY 12.

    Bye.

    • Setnaffa on December 8, 2012 at 9:43 am

      … and the “4 more years of hope and change” hasn’t even started…

      So get right with God and let Him give you peace of mind. Philippians 4:4-7… And yes, it’s taken Obama/Reid/Pelosi to get me to actually seek Christ…

  4. Setnaffa on December 8, 2012 at 2:42 pm

    Don’t think of this as a losing fight; because it isn’t over yet. Our job is to tell others. All of the heavy lifting belongs to God.

    Matthew 28:18-20 (NIV)

    Then Jesus came to them and said, “All authority in heaven and on earth has been given to me. Therefore go and make disciples of all nations, baptizing them in the name of the Father and of the Son and of the Holy Spirit, and teaching them to obey everything I have commanded you. And surely I am with you always, to the very end of the age.”

    Ephesians 6:12 (NIV)

    For our struggle is not against flesh and blood, but against the rulers, against the authorities, against the powers of this dark world and against the spiritual forces of evil in the heavenly realms.

    Zechariah 4:6b (NIV)

    …‘Not by might nor by power, but by my Spirit,’ says the Lord Almighty.

    Hebrews 13:5-6 (NIV)

    Keep your lives free from the love of money and be content with what you have, because God has said,

    “Never will I leave you;
    never will I forsake you.”

    So we say with confidence,

    “The Lord is my helper; I will not be afraid.
    What can mere mortals do to me?”

    • False God on December 9, 2012 at 4:24 am

      What kind of moron spends their life memorizing a fairytale? Normal people do things for themselves not praying to an imaginary all powerful being in the clouds to sort shit out for them. I wouldn’t expect much though from a person that idolizes an actor who played second fiddle to a monkey that became president.

      • Setnaffa on December 10, 2012 at 7:08 pm

        Psalm 14…

  5. The Twentyish Conservative on December 8, 2012 at 7:41 pm

    “As democracy is perfected, the office of president represents, more and more closely, the inner soul of the people. On some great and glorious day the plain folks of the land will reach their heart’s desire at last and the White House will be adorned by a downright moron.”

    -H.L. Mencken

    That quite sums it up.

    • Setnaffa on December 9, 2012 at 4:19 am

      Romans 1:22 (NIV)

      Although they claimed to be wise, they became fools

      Proverbs 14:12 (NIV)

      There is a way that appears to be right, but in the end it leads to death.

      Psalm 14:1-6 (NIV)

      The fool says in his heart, “There is no God.”
      They are corrupt, their deeds are vile; there is no one who does good.

      The Lord looks down from heaven on all mankind
      to see if there are any who understand, any who seek God.
      All have turned away, all have become corrupt; there is no one who does good, not even one.

      Do all these evildoers know nothing?

      They devour my people as though eating bread; they never call on the Lord.
      But there they are, overwhelmed with dread, for God is present in the company of the righteous.
      You evildoers frustrate the plans of the poor, but the Lord is their refuge.

  6. Gods Mom on December 9, 2012 at 4:35 am

    What the nation really needs is another GOP white house like during the Bush years. After all the GOP was great for the economy, it isn’t like they took a surplus and turned it into the worst recession since the 20’s.

    • Setnaffa on December 10, 2012 at 7:10 pm

      What the nation really needs is to turn back to God. To deny that shows you are who Psalm 14 is about…

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