{"id":6354,"date":"2023-05-19T09:08:45","date_gmt":"2023-05-19T13:08:45","guid":{"rendered":"https:\/\/dahlman.online\/?p=6354"},"modified":"2023-07-13T11:25:04","modified_gmt":"2023-07-13T15:25:04","slug":"the-magic-coin","status":"publish","type":"post","link":"https:\/\/dahlman.online\/index.php\/2023\/05\/19\/the-magic-coin\/","title":{"rendered":"The Magic Coin"},"content":{"rendered":"\n<figure class=\"wp-block-image size-full is-resized\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" data-attachment-id=\"6355\" data-permalink=\"https:\/\/dahlman.online\/index.php\/2023\/05\/19\/the-magic-coin\/trillion_dollar_coin\/\" data-orig-file=\"https:\/\/i0.wp.com\/dahlman.online\/wp-content\/uploads\/2023\/05\/Trillion_Dollar_Coin.jpg?fit=440%2C440&amp;ssl=1\" data-orig-size=\"440,440\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"Trillion_Dollar_Coin\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/i0.wp.com\/dahlman.online\/wp-content\/uploads\/2023\/05\/Trillion_Dollar_Coin.jpg?fit=440%2C440&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/dahlman.online\/wp-content\/uploads\/2023\/05\/Trillion_Dollar_Coin.jpg?resize=143%2C143&#038;ssl=1\" alt=\"\" class=\"wp-image-6355\" width=\"143\" height=\"143\" srcset=\"https:\/\/i0.wp.com\/dahlman.online\/wp-content\/uploads\/2023\/05\/Trillion_Dollar_Coin.jpg?w=440&amp;ssl=1 440w, https:\/\/i0.wp.com\/dahlman.online\/wp-content\/uploads\/2023\/05\/Trillion_Dollar_Coin.jpg?resize=300%2C300&amp;ssl=1 300w, https:\/\/i0.wp.com\/dahlman.online\/wp-content\/uploads\/2023\/05\/Trillion_Dollar_Coin.jpg?resize=150%2C150&amp;ssl=1 150w\" sizes=\"auto, (max-width: 143px) 85vw, 143px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">In Your Pocket<\/h3>\n\n\n\n<p>This is what everyone, and I mean everyone, needs.&nbsp;&nbsp;We need a \u201cmagic coin\u201d, they could be of any value.&nbsp;&nbsp;By simply having this coin in your pocket all your debts would be paid.&nbsp;&nbsp;You could have anything you wanted, anything that money could buy, because, you have a \u201cmagic coin\u201d.&nbsp;&nbsp;It wouldn\u2019t require a \u201csack\u201d of coins, or even a coin purse.&nbsp;&nbsp;A single \u201cmagic coin\u201d in your pocket would more than solve financial problems \u2013 it would make you rich almost beyond measure \u2013 for life.<\/p>\n\n\n\n<p>You can hear the \u201cinfomercial\u201d now, can\u2019t you?&nbsp;&nbsp;I mean, this would put the \u201cPocket Hose\u201d and \u201cPrevagen\u201d (the over-the-counter memory drug &#8211; like jellyfish!!) to shame.&nbsp;&nbsp;Get your own \u201cmagic coin\u201d and your life will be \u2013 different.&nbsp;<\/p>\n\n\n\n<p>You may be thinking, this whole topic is just a \u201csetup\u201d for some long-winded economic argument, the beginning of a lecture, like talking about \u201cwidgets\u201d or \u201cthe two boys with stones\u201d.&nbsp;&nbsp;And economically speaking&nbsp;&nbsp;some of my more practical friends might suggest the negative economic impact of people having \u201cmagic coins\u201d.&nbsp;&nbsp;Inflation would skyrocket, ultimately rising so much that the \u201cmagic coins\u201d would be devalued to \u201cregular coins\u201d.&nbsp;&nbsp;So here\u2019s the trick:&nbsp;&nbsp;everyone can\u2019t have a \u201cmagic coin\u201d.&nbsp;&nbsp;Just me &#8212; or just you.&nbsp;&nbsp;Nah, just me.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">31 U.S. Code \u00a7 5112<\/h3>\n\n\n\n<p>The US Code is the complied laws of the United States of America.&nbsp;&nbsp;While the Constitution outlines the structure of government and the rights of citizens, the US Code fills in the details of how it all works.&nbsp;&nbsp;&nbsp;31 US Code \u00a7 5112 is pretty dull stuff.&nbsp;&nbsp;It describes the size and content of coinage:&nbsp;&nbsp;how big is a one-dollar coin (1.043 inches in diameter) what it\u2019s made of, and where it can be minted, for example.&nbsp;&nbsp;But buried deep in the code, way down in item \u201ck\u201d is the following paragraph:<\/p>\n\n\n\n<p><strong>(k)<\/strong>&nbsp;&nbsp;<em>The Secretary may mint and issue platinum bullion coins and proof platinum coins in accordance with such specifications, designs, varieties, quantities, denominations, and inscriptions as the Secretary, in the Secretary\u2019s discretion, may prescribe from time to time.<\/em><\/p>\n\n\n\n<p>It\u2019s written right there, in the law \u2013 \u201c<em>The Secretary may mint and issue platinum bullion coins\u2026with such denominations\u2026as the Secretary, in the Secretary\u2019s discretion, may prescribe\u2026<\/em>\u201d.<\/p>\n\n\n\n<p>Way down in the middle of a law about what percentage of what metal goes into a quarter and such, is the formula for \u2013 wait for it \u2013 the magic coin!!<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Spending Money<\/h3>\n\n\n\n<p>The United States Congress does \u201cfunny\u201d things.&nbsp;&nbsp;First of all, when they pass a law to do something, they also have to pass another law to pay for that something.&nbsp;&nbsp;And both sides of the Congress, the House and the Senate, have to agree to both of those laws (and the President) for that action to happen.<\/p>\n\n\n\n<p>Congress, like most organizations, often (not always) passes a budget.\u00a0\u00a0That budget states how much they are going to spend in the next fiscal year, and it\u2019s thousands of pages long.\u00a0\u00a0So when they pass the budget, they allow for all of the \u201cnormal\u201d activities of the government to be paid for the next year.\u00a0\u00a0And some other things, (think billion dollar aircraft carriers and the like), are passed separately as well.\u00a0\u00a0When it\u2019s all said and done, Congress spends a great deal of its time determining how much money the United States is going to spend.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Paying Bills<\/h3>\n\n\n\n<p>But once the laws and the budget are passed, Congress is committed to pay for what they did.\u00a0\u00a0At least, they should be.\u00a0\u00a0The United States operates in a deficit, living on borrowed money to the tune of $32 Trillion.\u00a0\u00a0But Congress put another impediment to spending \u2013 they limit how much the United States can go in debt.\u00a0\u00a0We are now at nearing the \u201cmoment\u201d when the debt is reaching its statutory limit.\u00a0\u00a0Remember \u2013 Congress spent (and borrowed) all of this money in the first place.\u00a0\u00a0Now that the \u201cbill is due\u201d, they are considering NOT paying it.<\/p>\n\n\n\n<p>Defaulting on the debt would have immediate and dramatic economic impact.&nbsp;&nbsp;After all, if you can\u2019t trust the US Government, the US Dollar, US Savings Bonds; then what can you trust?&nbsp;&nbsp;So if Speaker McCarthy and President Biden can\u2019t come to some agreement, we are going to literally go off a cliff.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Desperate Measures<\/h3>\n\n\n\n<p>Desperate times call for desperate measures.&nbsp;&nbsp;President Biden does have some \u201cwild ideas\u201d that might dodge a debt default without agreeing to a deal with McCarthy.&nbsp;&nbsp;I wrote about one of those, invoking the&nbsp;<a href=\"https:\/\/dahlman.online\/index.php\/2023\/05\/03\/the-fourteenth-2\/\">Fourteenth Amendment<\/a>&nbsp;(<em>the debt of the United States cannot be questioned<\/em>) a couple of weeks ago.&nbsp;&nbsp;While the Amendment is \u201cblack letter law\u201d, it\u2019s possible that the Supreme Court might still overturn a Presidential action.&nbsp;&nbsp;After all, it\u2019s the Court of Thomas, Alito, Gorsuch, Barrett and Kavanaugh; anything can happen.<\/p>\n\n\n\n<p>So there\u2019s another move that the President, through the Secretary of the Treasury, can make.\u00a0\u00a0He can order the minting of a \u201cmagic coin\u201d.\u00a0\u00a0Under\u00a031 U.S. Code \u00a7 5112, item k, we know that the Secretary can mint a platinum coin and determine its value.\u00a0\u00a0The US Mint can mint a $1 Trillion coin.\u00a0\u00a0There\u2019s already a design!!<\/p>\n\n\n\n<p>A couple of $1 Trillion coins means that the US isn\u2019t going over the debt limit.\u00a0\u00a0They just become \u201cmoney in the Treasury\u201d, and so the Department can continue to pay the bills.\u00a0\u00a0Now, we all know, that it effectively DOES raise the debt limit \u2013 but it\u2019s within the law, good ol\u2019 part &#8216;k&#8217;.\u00a0\u00a0Is this inflationary \u2013 surely.\u00a0\u00a0But it would do less damage to the economy than the US defaulting on the debt.\u00a0\u00a0<\/p>\n\n\n\n<p>And it\u2019s fun to think what you could do with one in your own pocket!!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In Your Pocket This is what everyone, and I mean everyone, needs.&nbsp;&nbsp;We need a \u201cmagic coin\u201d, they could be of any value.&nbsp;&nbsp;By simply having this coin in your pocket all your debts would be paid.&nbsp;&nbsp;You could have anything you wanted, anything that money could buy, because, you have a \u201cmagic coin\u201d.&nbsp;&nbsp;It wouldn\u2019t require a \u201csack\u201d &hellip; <a href=\"https:\/\/dahlman.online\/index.php\/2023\/05\/19\/the-magic-coin\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;The Magic Coin&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[],"class_list":["post-6354","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - 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