Tax Machine Blog™

A Coin to rule them all

So, that pesky little government shut-down? It’s really not that big of a deal. We’ve had plenty since Jimmy Carter was president Yet – somehow – we’ve managed to get through them. What’s scarier than a government shutdown? The debt ceiling. It’s not really in dispute that coming up against the debt ceiling could do some real damage to the U.S. economy.

coins-57264_640So what can be done, if the GOP decides to shoot the hostage? Well, I guess there’s always that Trillion-Dollar coin. Slate thinks the Treasury should do it in secret. Yeah. Sounds like a really great idea. I’ll just let Forbes contributor Laurence Kotlikoff sum it up for us in his February post on the idea:

What the advocates of the $1 trillion coin are, therefore, proposing is to tax us in a hidden way.  This is not just taxation without representation.  It’s also taxation with misrepresentation.

Today, 12 cents out of ever dollar being spent by our government is being printed.  As indicated, the money supply has more than tripled.  While inflation, let alone hyperinflation, has not yet occurred, everything is in place for this outcome.