Is It Serious Enough To Get Silly?
Instead of accepting that we’re broke and declaring a default.
Instead of raising the debt ceiling.
Instead of minting a $1 trillion dollar platinum coin.
Here’s the latest idea to gain traction: This from the New York Times (emphasis added):
However, there is a plausible course of action, one that the president should publicly adopt in the coming weeks as his contingency plan should debt-ceiling negotiations falter. He should threaten to issue scrip — “registered warrants” — to existing claims holders (other than those who own actual government debt) in lieu of money. Recipients of these I.O.U.’s could include federal employees, defense contractors, Medicare service providers, Social Security recipients and others.
The scrip would not violate the debt ceiling because it wouldn’t constitute a new borrowing of money backed by the credit of the United States. It would merely be a formal acknowledgment of a pre-existing monetary claim against the United States that the Treasury was not currently able to pay. The president could therefore establish a scrip program by executive order without piling a constitutional crisis on top of a fiscal one.
Keep in mind California did EXACTLY this same thing in 2009. The IOUs were immediately accepted for deposit from banks who allowed holders to access real US Dollars against them, and the IOUs even traded on the FOREX exchanges. In other words, regardless of what they were called, California created, by decree, its own CURRENCY.
And now it has been suggested that Obama, by decree, create his own currency to avoid having to face the music or seek approval from Congress.
Obamabucks are now, at least in consideration, a reality.
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