Trillion Dollar Pennies

[peristaltor]

Got a heads-up today about a notion I've heard before, but which now seems to be getting some actual attention: What if the Treasury minted a couple trillion-dollar platinum pennies?

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

Comments

[bill_sheehan]

Platinum pennies will stimulate the economy. Think of the Franklin Mint Collectibles alone!

[peamasii]

does hyperinflation ring any bells?

[peristaltor]

If anyone can tell me the difference between what the Federal Reserve has been doing for the past four plus years and this, I'm all ears. The Fed has issued tens of trillions of unbacked credit thus far, and the economy continues to deflate.

[peamasii]

AFAIK it's the same thing.

[peristaltor]

Winner!

Actually, there is one difference. The Fed created money languishes in vaults and only enters the economy when borrowed at interest. The Treasury pennies would back interest-free money spent directly into the economy. Meaning the Treasury pennies would suck much, much less.

Suck less and still not cause hyperinflation.