yurell wrote:I don't think anyone in power would be stupid enough to actually mint such a coin, as it would probably be the single most efficient way to kill your economy.
It might be marginally better than default, as that'd also be pretty lethal to our economy. Still...both options are pretty horrific. IIRC, the initial proposal called for minting two coins worth a trillion dollars each.
M0 is less than a trillion dollars, so tripling that would be rather drastic. Still, as it'd be sitting in a vault as opposed to general circulation, I don't know if the effect would be quite the same as most M0 currency. Still, even if it's M1, it's rather more than a doubling, still easily enough to generate hyperinflation.
It's not unlike previous measures such as Zimbabwe's decision to print a new note at a previously unheard of denomination...and that eventually led to abandoning their currency entirely. That's worrying, to say the least. It'd take a rather impressive level of stupid to print these coins, legal or not.
sardia wrote:Tymyndor: I haven't heard many republicans argue that certain taxes are bad because it's inefficient at gathering wealth. If that were true, they'd push for ways to get the estate tax reconfigured, not just lower the tax rate, which makes it even less efficient.
Apologies for being unclear...that was my opinion, not that of the republicans. I agree that their particular approach to it made it even less efficient. Given the small total overall gains from the tax and the low efficiency rate, I think I'd be satisfied with dropping it entirely...but I do not consider the halfway measure to be necessarily half as good, and it seems they do.
CorruptUser wrote:Yes and no. Since the US debt is measured in dollars, hyperinflation renders the debt absolutely meaningless. Who cares if the debt is 16 trillion when the average salary is 50 trillion?
It also renders savings meaningless, means loans will cease to be a thing and, if bad enough, will utterly invalidate the currency, causing people to move to another or, if desperate, to barter. It kills the debt, sure, but it's like using a shotgun to kill the mosquito on your arm.
CorruptUser wrote:In reality, the US has only 3 ways of dealing with the debt. The 1st way is to print it all away, via hyperinflation. The 2nd is to reneg on it at least partially, which would still lead to hyperinflation and other problems. The 3rd way is to magically fix the economy to the point where the US can get another $1T/yr in taxes, which is not going to happen short of someone discovering how to turn atmospheric heat into electricity.
Well, there's also a reduction in government spending as a 4th option. It also has tradeoffs, mind you, but at least it is possible(probably most possible combined with a degree of taxation).
There's also yet another possibility, which is to raise the debt limit again. Yes, yes, I know this also comes with downsides, but it's happened what, like seventy times before? It might well happen again.