Hey, it’s a better idea than anything we’ve heard from Obama:
Rep. Jerrold Nadler has an admittedly “out of the ordinary” solution to the coming fight over the debt ceiling.
“There is specific statutory authority that says that the Federal Reserve can mint any non-gold or -silver coin in any denomination, so all you do is you tell the Federal Reserve to make a platinum coin for one trillion dollars, and then you deposit it in the Treasury account, and you pay your bills,” Nadler said in a telephone interview this afternoon.
I asked whether he was serious.
“I’m being absolutely serious,” he said. “It sounds silly but it’s absolutely legal. And it would normally not be proper to consider such a thing, except when you’re faced with blackmail to destroy the country’s economy, you have to consider things.”
The one thing you can say is, it’s an approach with a proven track record in other countries. (Of course, that track record is one of hyperinflation and economic misery. )
I actually own a $100 trillion dollar note. It was given to me the last time I ever saw Andrew Breitbart, about a month before he died — and when he saw it he pulled out his own $100 trillion note, which he said he carried with him at all times in his wallet, as a reminder of what happens when a country resorts to hyperinflation to settle its debts.
Because our $100 trillion notes were, of course, from Zimbabwe. And didn’t things work out great in Zimbabwe?
Hats off to Rep. Nadler for his seriousness on the budget discussion. And rest assured that other Democrats, including President Obama, are every bit as serious as he about fixing this problem.