She said it was so bad that she thinks this will cause the fed to talk about more, wait for it................quantatative easing. I'm not kiddingSure, why not? It's worked so well to date. We just need a bit more of the hair of the dog. --------------------------------------------------------Have you heard of the platinum coin solution?http://hotair.com/archives/2012/12/07/economists-love-old-gr...If President Obama wants to avoid an economic calamity next year, he could always show up at a news conference bearing two shiny platinum coins, each worth .?.?. $1 trillion.Okay, that sounds utterly insane. But some economists and legal scholars have suggested that the “platinum coin option” is one way to defuse a crisis if Congress cannot or will not lift the debt ceiling soon. At least in theory.It sounds utterly insane because, well … it is utterly insane. Apparently, acts of insanity are totally legal in the US, though, as long as they’re committed by a Treasury Secretary:Enter the platinum coins. Under current law, the Treasury is technically allowed to mint as many coins made of platinum as it wants and can assign them whatever value it pleases.Under this scenario, the U.S. Mint would make a pair of trillion-dollar platinum coins. The president orders the coins to be deposited at the Federal Reserve. The Fed moves this money into Treasury’s accounts. And just like that, Treasury suddenly has an extra $2 trillion to pay off its obligations for the next two years — without needing to issue new debt. The ceiling is no longer an issue.“I like it,” said Joseph Gagnon of the Peterson Institute for International Economics. “There’s nothing that’s obviously economically problematic about it.”In theory, this is much like having the central bank print money. But, Gagnon said, the U.S. government would simply be using the money to keep spending at existing levels, so it would not create any extra inflation. And if it did cause problems, the Fed could always counteract the effects by winding down some of its other programs to inject money into the economy.
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