Even the Wall Street Journal is caught up in the frenzy to print a $1 trillion coin to solve the problem of raising our debt limit. It started off as a liberal strategy to undermine the conservative’s last stand over the debt limit, and now it’s become a bona fide option for our national fiscal policy.
This is all reminiscent of the good ‘ol subprime mortgage trick. Massage national policy to force banks to entice people to sign onto mortgages they can’t afford to jump start the housing industry, thus the economy. The only problem is that our government has tried this trick seven times in the past, and it failed every single time.
You don’t have to look any farther than the Federal Reserve’s balance sheet to see three of these mythical $1 trillion coins, all minted since Obama took office. The Fed has printed $3 trillion on monopoly money to prop up the economy – first buying worthless “mortgage backed securities” then U.S. Treasury notes to finance our $1 trillion annual debt.
Of course, this is an old trick. Democrats have used it consistently over the last 40 years to steal money from the Social Security Trust Fund. (And you were upset that they’re back to taking the 2% payroll tax out of your paycheck?). Social Security now has an IOU (literally) for $2.5 trillion, payable on demand.
Finally, there’s the $1 trillion “stimulus” to pump “liquidity” into the five Too Big To Fail Banks (which together have sold derivatives worth 10 times the total annual output of the whole world, 600 of these $1 trillion coins), and $1 trillion annual debts ever since, for a grand total of 4 more uber-coins.
Beware what you ask for.
