And get this, the demented dems are considering this:
A $1 trillion coin could be minted within hours of an emergency decision by Treasury Secretary Janet Yellen to avert a default on America’s debts.
Oh, and what will be accomplish?
The swiftness of creating a $1 trillion coin could serve as an extreme last-minute option if Congress failed to raise the debt ceiling before the Treasury runs out of money on October 18.
But as Treasury Secretary Janet Yellen urges Congress to raise the debt ceiling to avoid an economic catastrophe, she is also knocking down the idea of the $1 trillion coin.
And you know why this is a horrible idea?
There would likely be many drawbacks from the materialization of a $1 trillion coin. It could undercut faith in America’s monetary system and drag the Federal Reserve into a high-stakes political battle…
Not just that, but also.
“Voila, we’d have bought ourselves the equivalent of a trillion-dollar increase in the debt limit, without any impact on inflation,” Diehl said.
Philip Diehl was the director of the US Mint from 1994 to 2000.
But his statement is as false as anything the demented dems have made claim too.
For it is known that printing money cause inflation;
Money becomes worthless if too much is printed. If the Money Supply increases faster than real output then, ceteris paribus, inflation will occur. If you print more money, the amount of goods doesn’t change. … If there is more money chasing the same amount of goods, firms will just put up prices.
So a trillion dollars created just like that flushes in economy with a huge increase in money, and by definition, will drive up inflation!
And the idea from the WH circle back girl that she expects any new/increases in taxes to be eaten up by the companies and not passed on to the end products/customers once again shows how out of touch with financial reality the demented dems are.
So anytime you hear the demented dems claiming their multi Trillion dollars agendas/bills will be completely covered and not cost the US public on dollar, is fake news and pure misinformation!
If the do create a trillion dollar coin, how far will the US green backs fall in international money markets?
That too will create inflation as it will make international goods cost more!
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