The whole $1T platinum coin goes back to last year -- the months before the previous debt ceiling hit -- as covered in the PragCap blog in July 2011.
The issue gained traction this week however, when everyone realized that the fiscal cliff was a trifle problem compared to the debt ceiling, and Paul Krugman more or less initiated the discussion, which was followed up by Joe Weisenthal, Matthew Yglesias, and Josh Barro.
Step in, Mother Jones' Kevin Drum who summons the rainstorm on their parade, by suggesting this idea wouldn't fly under a courtroom review.
The problem I see it is, the platinum coin is a pragmatic attempt to get around a dogmatic problem. There is no debt issue for the US, except the one manufactured by those who wish for smaller government, and use the debt as a guise for their smaller government push.
There are also, just some really dumb politicians out there, however, and they actually believe that we have a debt problem. If you ask them to point out the indications that we have a debt problem, they will either point to $16T and tell you that it is a very big number, or they will point to inflation on the horizon. Since the big number when placed into proper context is not really that big, and inflation has been on the horizon for these doomsayers for the last four years, it's safe to say they haven't a whiff of a clue to what's really going on. It's like exclaiming with sign in hand, "The end is near!" Death comes to all of us; the end is always nearer than it was the day before.
But you see, I don't think we can get around dogma if we don't confront it head on and let people see why their dogmatic beliefs are wrong, and thus suffer a little for the benefit of laying to rest these zombie ideas.
As I've mentioned before, the debt ceiling is the equivalent of a Balanced Budget Amendment. Let's have it tested out and put to bed before it comes up again, whenever it suits the situation of opposition politics...at least for a generation or two, that is.
Update: I thought I should demonstrate the depth of this support of a Balanced Budget Amendment. This is what the House did on the first day, related to the BBA and the debt ceiling:
- H.J.Res.1 - Proposing a balanced budget amendment to the Constitution of the United States.
- H.J.Res.2 - Proposing a balanced budget amendment to the Constitution of the United States.
- H.J.Res.4 - Proposing a balanced budget amendment to the Constitution of the United States.
- H.J.Res.5 - Proposing an amendment to the Constitution of the United States relative to balancing the budget.
- H.J.Res.6 - Proposing a balanced budget amendment to the Constitution of the United States.
- H.J.Res.9 - Proposing an amendment to the Constitution of the United States prohibiting the United States government from increasing its debt except for a specific purpose by law adopted by three-fourths of the membership of each House of Congress.
- H.J.Res.10 - Proposing an amendment to the Constitution of the United States requiring that the Federal budget be balanced and that an increase in the Federal debt requires approval from a majority of the legislatures of the several States.
- H.J.Res.11 - Proposing a balanced budget amendment to the Constitution of the United States.
And that was a full day before they voted on additional FEMA funding for Hurricane Sandy!
Do you know where your political party stands on its priorities?
Update 2: Don't even bother listening to the news media at large, as they really don't know much about the issue. I was watching the local KPTV Fox affiliate broach the subject and it was terrible. They bought hook line and sinker that the size of the federal debt is bad.
Update 2: Don't even bother listening to the news media at large, as they really don't know much about the issue. I was watching the local KPTV Fox affiliate broach the subject and it was terrible. They bought hook line and sinker that the size of the federal debt is bad.
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