Friday, July 29, 2011

Surreal Problems...

...require surreal solutions:

Now there's this option, as outlined by Jack Balkin:
So if something does pass the House, it will demand a constitutional balanced-budget amendment as the price of a second vote next year. I think we can safely say that the political process has failed. Now what?
Well, there do appear to be legal loopholes. Jack Balkin gives us the platinum coin option:
Sovereign governments such as the United States can print new money. However, there’s a statutory limit to the amount of paper currency that can be in circulation at any one time.
Ironically, there’s no similar limit on the amount of coinage. A little-known statute gives the secretary of the Treasury the authority to issue platinum coins in any denomination. So some commentators have suggested that the Treasury create two $1 trillion coins, deposit them in its account in the Federal Reserve and write checks on the proceeds.

Franz would have been proud...

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