Britannia Radio

One of the "stupidest" ideas in finance may have finally been put to rest

Monday, January 14, 2013 From Global Economic Trend Analysis: At long last, a stupid, as well as illegal idea dies on the vine. Bloomberg reports Treasury, Fed Oppose Using Platinum Coin to Avoid Debt Limit: The U.S. Treasury Department and Federal Reserve oppose the idea of minting platinum coins as a way to avoid the U.S. debt ceiling, according to a statement from Treasury spokesman Anthony Coley.   "“Neither the Treasury Department nor the Federal Reserve believes that the law can or should be used to facilitate the production of platinum coins for the purpose of avoiding an increase in the debt limit,” Coley said in an e-mailed statement... Hopefully that will stop the downright silly, if not idiotic commentary regarding the coin, but don't count on it. I suggest this seven-step charade is what we will see. Politics of the Debate •   Obama will chastise Congress with talk of financial Armageddon if Congress does not raise the debt ceiling. •   Congress will pretend to hold the president hostage. •   The Secretary of the Treasury will get into the act with its own version of the default debate. •   Perhaps a few payments on non-critical budget items will be temporarily skipped. •   Wall Street will feign panic. •   Constituents will pressure Congress to approve a new debt ceiling. •   Congress will raise the ceiling with another useless warning about next time. To understand why a default is completely out of the question, please see... Read full article... More on the debt ceiling debate: Warning: The real 2013 cliff is still in front of us This is the "bottom line" on Washington's fiscal-cliff deal Simple facts show Obama's debt-ceiling default threats are nonsense