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Accountability national politics & policies U.S. Constitution

Facing the Debt with Deceit

The “trillion dollar coin” solution to the federal debt reared its absurd head, again, during the recent “debt ceiling” brouhaha.

I wrote about it over ten years ago, when Big Talkin’ Republicans were challenging Big Spendin’ Democrats over raising the debt ceiling at that time. 

The idea is bold trickery, allowing the President to inflate the currency by leveraging Treasury’s Congress-given ability to coin platinum coins at any face dollar value. 

Typically, such collector coins sport on the reverse a value far below the metal’s value.* The trillion dollar coin would invert that, fixing the face value far, far above the metal value. The freshly minted coin would be sent to the Federal Reserve, covering the books that way.

It’s inherently deceptive and obviously ridiculous.

Thus it symbolizes contemporary politics quite aptly.

After the recent budget compromise that forestalled any real work of marshaling the federal government’s scarce (if astoundingly awesome) financial resources, however, the trillion dollar coin has been shelved.

For now.

Indeed, Democrats are tiring of the debt ceiling brinksmanship game. And it is mostly posturing. “Democrats have introduced a bicameral proposal to overhaul the debt ceiling process, leaning heavily into the recent default scare to push a bill that would essentially let Treasury ignore the debt cap and continue writing cheques with no limit,” explains The Epoch Times.

Would this any be better than the fake coin?

Perhaps more honest.

But, once again, it would be Congress giving away its authority. 

And until Congress can restrain its spending habits, we, the people, will always come up tails.

This is Common Sense. I’m Paul Jacob.


* On the day I checked, the spot price for an ounce of platinum was just over $1000, and the face value on the American Platinum Eagle remained $100, the ratio being a tenth of metal value.

trillion dollar coin, debt, Congress, folly

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Gore Vidal

Apparently, “conspiracy stuff” is now shorthand for unspeakable truth.

Gore Vidal, “The Enemy Within,” The Observer (October 27, 2002).
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Today

Anti-slavery

On June 13, 1774, Rhode Island became the first British colony in the Americas to prohibit the importation of slaves.

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international affairs privacy

The Cuban Missive Crisis

Very soon, maybe, the Chinese government will be able to peruse secret military and other electronic missives being transmitted “throughout the southeastern U.S., where many military bases are located, and monitor U.S. ship traffic,” according to a Wall Street Journal story.

Under an until-now secret agreement between China and Cuba, Cuba will charge China a mere several billion dollars for Cuba’s permission to build the eavesdropping station on Cuban territory.

If cited intelligence is accurate, the planned station would enable China to spy on emails, phone calls, satellite transmissions, and other communications. The data thus scooped up would probably facilitate China-sponsored cyberwarfare and other sabotage, as well as its pursuit of overseas Chinese nationals that the Chinese government wants to keep trapped in China.

Craig Singleton, an analyst for the think tank Foundation for Defense of Democracies, says that moving to establish the spy facility “signals a new, escalatory phase in China’s broader defense strategy. The selection of Cuba is also intentionally provocative.”

Perhaps the publicity about the spy station will help to stop it from happening.

John Kirby, a National Security Council spokesman, told the Journal that its story is “inaccurate” without spelling out the inaccuracies. He also said that the U.S. is taking steps to counter Chinese development of such spy infrastructure. “We remain confident that we are able to meet all our security commitments at home and in the region.”

I guess we’ll see. Before it’s too late, I hope.

This is Common Sense. I’m Paul Jacob.


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Aldous Huxley

That men do not learn very much from the lessons of history is the most important of all the lessons that history has to teach.

Aldous Huxley, “A Case of Voluntary Ignorance” in Collected Essays (1959).
Categories
Today

Rights

In 1776, on June 12, the Fifth Virginia Convention at Williamsburg, Virginia, unanimously adopted a Declaration of Rights, several weeks prior to the adoption of the state’s constitution. George Mason (pictured above), who drafted the document, stated clearly in the preamble that rights must be “the basis and foundation of Government.”

The first four planks run as follows:

I. That all men are by nature equally free and independent, and have certain inherent rights, of which, when they enter into a state of society, they cannot, by any compact, deprive or divest their posterity; namely, the enjoyment of life and liberty, with the means of acquiring and possessing property, and pursuing and obtaining happiness and safety.

II. That all power is vested in, and consequently derived from, the people; that magistrates are their trustees and servants, and at all times amenable to them.

III. That government is, or ought to be, instituted for the common benefit, protection, and security of the people, nation or community; of all the various modes and forms of government that is best, which is capable of producing the greatest degree of happiness and safety and is most effectually secured against the danger of maladministration; and that, whenever any government shall be found inadequate or contrary to these purposes, a majority of the community hath an indubitable, unalienable, and indefeasible right to reform, alter or abolish it, in such manner as shall be judged most conducive to the public weal.

IV. That no man, or set of men, are entitled to exclusive or separate emoluments or privileges from the community, but in consideration of public services; which, not being descendible, neither ought the offices of magistrate, legislator, or judge be hereditary.

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Thought

Graham Greene

A petty reason perhaps why novelists more and more try to keep a distance from journalists is that novelists are trying to write the truth and journalists are trying to write fiction.

Graham Greene to critic Stephen Pile, The Sunday Times (London, January 18, 1981).
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Today

Declarations

On June 11, 1776, the Continental Congress appointed John Adams, Benjamin Franklin, Thomas Jefferson, Robert R. Livingston, and Roger Sherman to draft a declaration of independence from Great Britain.

In 1963, Thich Quang Duc, a Buddhist monk, doused himself with gasoline and set himself aflame in a busy Saigon intersection as a protest against South Vietnam’s lack of religious freedom.

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Thought

Jacinda Ardern

We will share with you the most up-to-date information daily. You can trust us as a source of that information. You can also trust the Director-General of Health and the Ministry of Health for their information. Do feel free to visit it anytime to clarify any rumor you may hear. COVID19.govt.nz. Otherwise, dismiss anything else. We will continue to be your single source of truth. 

New Zealand Prime Minister Jacinda Ardern, March 19, 2020, see “Did New Zealand PM Jacinda Ardern Once Say, ‘Unless You Hear It from Us, It Is Not the Truth’?”, Snopes.com.
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Today

Birthdays

Born on this day: historian, jazz critic and civil libertarian Nathan Irving Hentoff (1925); children’s writer Maurice Sendak (1929); scientist and pioneer of “sociobiology,” E. O. Wilson (1929).

Hentoff wrote several works on the history and nature of free speech in America, including The First Freedom (1980). Sendak is most famous for Where the Wild Things Are (1963). Wilson’s many books include Consilience: The Unity of Knowledge (1998).


Apple shipped the first Apple II computer on June 10, 1977. It was typographically styled as the “Apple ][” and the series continued long after the specific II model was superseded by the Apple II Plus and was discontinued in 1981. The last II-series Apple in production, the IIe card for Macintoshes, was discontinued on October 15, 1993.


Sendak died in 2012, Hentoff in 2017, while Wilson died on December 26, 2021.