Trillion-Dollar Coin Theory

97 days left until all hell breaks loose? [Altucher Confidential] February 28, 2023 [WEBSITE]( | [UNSUBSCRIBE]( Ultimately, we’re heading for a sovereign debt crisis. That’s not an opinion; it’s based on the numbers. [Hero_Image] Trillion-Dollar Coin Theory By Chris Campbell URGENT DEADLINE: Your $557 credit is about to expire. You've got an immediate $557.00 credit that has been applied to your account… [Please click here immediately to learn how to claim this credit.]( **DISCLAIMER: Please note, this offer expires at midnight** [Chris Campbell] CHRIS CAMPBELL 13 years ago, a lawyer named Carlos Mucha, under the pseudonym Beowulf, made an off-hand comment in a blog by hedge fund manager Warren Mosler. In short, he floated the idea of a trillion-dollar coin to resolve the debt crisis. Mucha later admitted he was inspired by a Wall Street Journal article about travel hacking -- or gaming credit card points to travel for free. Back then, people were getting free frequent-flyer miles by ordering coins from the U.S. Mint with a rewards credit card, then taking the coins to a bank to pay off the debt. Mucha later told Wired that he floated the idea “for the lulz.” (Another way to say, “for a laugh.”) And yet, by July of 2011, the mainstream financial press latched onto the idea and ran full speed with it. In 2012, Paul Krugman endorsed the idea in [The New York Times](. Then Congressman Jerry Nadler hopped aboard, too. The idea was rejected by the Treasury and the Fed… But then it saw a resurgence in 2020, during the COVID economic shutdowns, and then in 2021 as the debt-ceiling crisis reared its head again… And now, as you probably know, it’s back in 2023. Easy Breezy? Think Again. As The Atlantic pointed out this week: “The Biden administration could exercise its unilateral legal authority over U.S. currency to mint a trillion-dollar platinum coin and use it to pay the government’s bills.” Rohan Grey, a law professor at Willamette University, believes it’s a simple way for the US government to avoid the debt drama. And he’s far from alone. Our colleague Jim Rickards isn’t as keen. “Only the simpletons in financial media believe this idea is worth discussing, but it’s good to understand it because you will be hearing more about it.” Sure, says Jim, the idea seems simple: “The Treasury would ask the U.S. Mint to produce a solid platinum coin. The Treasury would give the coin to the Federal Reserve and simply declare that the coin was worth $1 trillion. (Assuming a one-ounce coin, the actual market price is about $1,000.) “The Fed would put the coin in a vault and credit the U.S. Treasury general account with $1 trillion. The Treasury could spend that newly printed money as it wished. The Treasury would not violate the debt ceiling because no new debt would be issued; the Fed would just create the dollars out of thin air. Easy-breezy.” But not so fast… “Of course,” he goes on, “the trillion-dollar coin policy would be disastrous. The arbitrary valuation of the coin would show the true Ponzi nature of the Treasury market today. Fed efforts to supply the cash would radically increase the money supply and probably trigger more inflation. The Fed and Treasury would be laughingstocks.” A precarious position for the Fed and the Treasury, as they rely almost entirely on public confidence. Urgent Note From James – Response Requested By Midnight [I just made a massive change to my Altucher’s Investment Network newsletter.]( This is one of the biggest changes to a newsletter in the history of our business… As far as I know, nothing like it has ever been done before. I’m adding 3 brand-new benefits to this all-new “Pro level” of Altucher’s Investment Network. And as one of my readers, I’d hate to see you left behind. That’s why – until MIDNIGHT tonight – [you’ll be able to upgrade your current subscription to this new “Pro level” by clicking here.]( [Seriously. Just click here now to see how to claim your upgrade.]( Each Side Will Try to Scare Voters No one knows how long the debt-ceiling shell game can last. Estimates often refer to the “X-Date,” or the day the Treasury runs dry and can’t pay its bills. “Right now,” Jim writes, “the X-Date is estimated to be around June 5, 2023, but even that is a guess.” One thing is more certain: the doomsayers will be in full force. “Democrats will try to scare voters with claims of debt default, lost Social Security payments and lost benefits such as pre-K.On the other side of the aisle, Republicans will scare voters with claims of runaway deficits, higher interest rates, lost confidence in the dollar and money printing as far as the eye can see.” What does that mean for investors? More volatility and market uncertainty with which to contend. When the Clock Strikes Midnight “Monetary policy won’t get us out because the velocity of money, the rate at which money changes hands, is dropping,” says Jim. “Printing more money alone will not change that. Fiscal policy won’t work either because of the high debt ratios I just discussed. At current debt-to-GDP ratios, each additional dollar spent yields less than a dollar of growth. But because it must be borrowed, it does add a dollar to the debt. Debt becomes an actual drag on growth.” Many see this as a license to keep expanding the debt… But, contrary to popular thought, it can’t go on forever. Jim: “No one can say when the clock will strike midnight — people have been warning about an impending collapse for decades, and it hasn’t happened. But the more debt we add, the faster the day of reckoning will arrive.” Until then, the prudent will prepare. And speaking of midnight… Your invitation to Jim’s exclusive market insights -- alongside a $557 credit -- ends tonight when the clock strikes twelve. Last call… [Click here for all the details.]( Until tomorrow, [Chris Campbell] Chris Campbell For Altucher Confidential Secret Gold Back currency RUINING Biden’s plans for a digital dollar? [Click here for more...]( What I’m holding in my hand is a completely new form of money… As we speak, it's being used as an alternative currency across the U.S. minting in places like Utah, New Hampshire and Nevada… And since it’s made out of a thinly printed sheet of REAL gold... It may be the single best way to protect your wealth from Biden’s plan for a government controlled digital dollar. That’s why, I want to offer to send one to you today. But since I have a limited number I need you to respond to [this message]( by Wednesday at midnight. [I’ve recorded a short 2 minute message that explains everything here.]( [Paradigm]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( © 2023 Paradigm Press, LLC. 808 Saint Paul Street, Baltimore MD 21202. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. 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