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"The "government" can't "arbitrarily inflate the currency"." The US government can literally do this. They can print as much money as they feel like. It would

by stale2002 9y ago

"The "government" can't "arbitrarily inflate the currency"." The US government can literally do this. They can print as much money as they feel like. It would be 'dumb' for sure, but the US treasury is indeed allowed to do this. There was even talks of solving the national debt crisis by having Obama create a trillion dollar coin a couple years ago.

davebryand 9y ago
I think he was positing that they couldn't inflate in a future world of a GovCoin. There is actually an interesting nugget in the Obama idea. The "trillion dollar coin" thing completely misunderstands market dynamics, but the idea of the Executive taking power back from The Federal Reserve is interesting.
kolbe 9y ago
If the US Treasury did that, it would be illegal. The coin thing is a hack that would probably be challenged in court, because it's illegal for the Treasury to arbitrarily print money, except when it's silver. So, you're not wrong in that the treasury can physically do those things, but it's in the same way that you wouldn't be wrong if you claim North Korea can do the same by illegally counterfeiting endless dollars.
- dragonwriter 9y ago
  > The coin thing is a hack that would probably be challenged in court, Probably on some basis, but it would also probably survive the kind of challenge you describe. > because it's illegal for the Treasury to arbitrarily print money, except when it's silver. Platinum, actually, not silver. [31 USC § 5112(k)] Which is why minting the coin as a platinum coin was an essential component of the idea.
- freeone3000 9y ago
  Why wouldn't north korea counterfeit endless dollars in order to get a liquid cash supply? It sounds like a pretty great plan.
thisisit 9y ago
There is a more complicated relationship going on than central government printing money: https://www.investopedia.com/ask/answers/082515/who-decides-when-print-money-us.asp https://www.investopedia.com/ask/answers/082515/who-decides-... The myth that the central bank prints money became prevalent following the Great Recession, when many were concerned about the unconventional policies of the central bank, which included intervention in the commercial paper market, mortgages and outright purchases of debt to keep the system from collapsing. By the end of the recession, the Federal Reserve had expanded its balance sheet by nearly $4 trillion.
tpfour 9y ago
Well there are rules they have to follow. Just like there would be rules to follow with the crypto coin... Not sure what's the difference.

davebryand 9y ago

I think he was positing that they couldn't inflate in a future world of a GovCoin. There is actually an interesting nugget in the Obama idea. The "trillion dollar coin" thing completely misunderstands market dynamics, but the idea of the Executive taking power back from The Federal Reserve is interesting.

kolbe 9y ago

If the US Treasury did that, it would be illegal. The coin thing is a hack that would probably be challenged in court, because it's illegal for the Treasury to arbitrarily print money, except when it's silver. So, you're not wrong in that the treasury can physically do those things, but it's in the same way that you wouldn't be wrong if you claim North Korea can do the same by illegally counterfeiting endless dollars.

dragonwriter 9y ago
> The coin thing is a hack that would probably be challenged in court, Probably on some basis, but it would also probably survive the kind of challenge you describe. > because it's illegal for the Treasury to arbitrarily print money, except when it's silver. Platinum, actually, not silver. [31 USC § 5112(k)] Which is why minting the coin as a platinum coin was an essential component of the idea.
freeone3000 9y ago
Why wouldn't north korea counterfeit endless dollars in order to get a liquid cash supply? It sounds like a pretty great plan.

thisisit 9y ago

There is a more complicated relationship going on than central government printing money: https://www.investopedia.com/ask/answers/082515/who-decides-when-print-money-us.asp https://www.investopedia.com/ask/answers/082515/who-decides-... The myth that the central bank prints money became prevalent following the Great Recession, when many were concerned about the unconventional policies of the central bank, which included intervention in the commercial paper market, mortgages and outright purchases of debt to keep the system from collapsing. By the end of the recession, the Federal Reserve had expanded its balance sheet by nearly $4 trillion.

tpfour 9y ago

Well there are rules they have to follow. Just like there would be rules to follow with the crypto coin... Not sure what's the difference.