What Would Minting A Trillion-Dollar Coin Do To Our Economy?

You know what they say about things that "sound too good to be true..."

The "Nobel laureate economists" are at it again - yes, the same ones who three years ago told us locking down the economy would have no significant impact on it - those Nobel laureate economists.

These days, it's hard to take anything that these economists say for much more than a grain of salt, since they've been so wrong about every major economic prediction in most of our lifetimes. And yet, for some reason, there are those who still take these morons seriously.

Paul Krugman, for example, who admitted recently that he was in fact incorrect in regards to one of the most important economic predictions of this generation, now wants to tell us that minting a trillion dollar coin won't have any bad effects on the economy, and that all minting 31 $1 trillion dollar coins would do is resolve our debt crisis in the United States. By the way, it's noteworthy that Paul Krugman was one of the "economists" that dreamt up this cockamamie scheme in the first place.

But would this really solve our debt problem? What would the governments of other countries think or do once they see us minting trillion dollar coins to solve a sovereign debt crisis? No one knows the answer to such a question, because no government has ever actually been insane enough to try it.

Personally, I believe carrying out such a scheme, at the end of the day, would more or less represent a de facto default on the debt. Here's why I think this: a plan like this wouldn't represent a true debt-payoff. To elaborate, Paul Krugman's idea would simply require the U.S. Treasury to put a coin design in a computer, print 31 of them, and then move them into a big vault somewhere inside one of the many Federal Reserve buildings in the United States... and then, POOF! Our debt is paid off! No more sovereign debt for America! (On a side note, it's pretty silly that one would need a degree in economics to dream up such a scheme - any first grader you drafted to solve such a problem could come up with a solution that's equally as absurd.)

If this sounds a little too good to be true, it's because it almost certainly is. I believe carrying out such a scheme would have almost the same effect on the economy that an actual default would, at least as far as foreign governments are concerned. Once a foreign government realized we did such a thing, they would almost certainly downgrade our credit, or perhaps even refuse to lend us any more money at all. And could anyone really blame them? What would you do if you were the leader of a foreign government, and watched the United States pay off its own debt entirely just by minting a few coins? My guess is you'd stop taking its "Nobel laureate economists" seriously, along with the POTUS, Congress and anyone else who signed on to execute such an absurd idea.

So what affect would minting 31 $1 trillion dollar coins have on the economy? I wouldn't be able to tell you for sure, because no government has ever been quite insane enough to try it, but count on the United States and the Federal Reserve to entertain such an idea before any other country. I can surmise about such a thing though (I did, after all, predict all the current issues we're experiencing right now in our economy three years ago, back when all our "Nobel laureate economists" were predicting we'd be totally fine). And my guess is, at the very least, we'd run into some pretty major issues that would dramatically screw up our economy (even worse than it is now), and Paul Krugman the "Nobel laureate economist" would, once again, be proven a complete moron and completely undeserving of any Nobel Prize he's won.

Paul Krugman, please do us all a favor and resign from your job. But, if you don't want to so you can still collect your hefty paycheck to not create much value for anyone, then at least stop making economic predictions, or giving any "advice" or "insight" on our economy whatsoever.