Jan 14, 2013
The $1-Trillion Coin Scheme - A Sign of Desperation
The folks in Washington DC have had tremendous success in maintaining the illusion that our national budget is on a sustainable path. As we near the breaking point, the Federal Reserve and U.S. Treasury have been forced to use more inventive tactics to keep the American economy from collapse. Even though the Fed is buying 90 percent of our nation's debt, and this would be called debt monetization in other settings, they have been able to maintain calmness by simply calling it "quantitative easing."
The latest fiscal gimmick being talked about is the issuance of a $1-trillion coin in order to get around the national debt ceiling that is coming up next month. Since congressional Republicans are vowing to block any increase in the debt ceiling that doesn't include spending cuts, the White House could legally instruct the Treasury Department to produce a platinum coin with a face value of $1 trillion and give this to the Federal Reserve. The Fed would then credit the Treasury’s account with a trillion dollars that could then be applied to the general budget.
One supporter of this idea is New York Times economist Paul Krugman, who says it deserves consideration in that it could help solve one of our country’s biggest economic issues. “By minting a $1 trillion coin, then depositing it at the Fed, the Treasury could acquire enough cash to sidestep the debt ceiling – while doing no economic harm at all,” Krugman wrote.
When White House press secretary Jay Carney was asked about the platinum coin option to avoid the debt ceiling, he offered the Obama administration's support in a roundabout way. He was asked three times to weigh in on the plan, and each time he refused to say anything negative about it.
I don't understand why they focused on $1 trillion as the face value for the coin. If a mint is going to produce this coin, there will most likely be more than one. Just 100 of them would be equal to the global GDP. If I was pushing this scam, I would suggest making them have a $10-billion face value. A trillion dollars worth of these coins would fit nicely into a small bag that could be easily presented to Federal Reserve Chief Ben Bernanke.
The liberal media has been incredibly supportive of this nutty idea. Normally, when something is proposed that falls outside the realm of rational thinking, a healthy dose of critical thinking is called for. I watched three major networks lay out this scheme without allowing for any rebuttal. The plan is so crazy it deserves the type of mockery that I found on various financial blogs. Charles Hugh-Smith of OfTwoMinds had this comical comment: "The $1 trillion platinum coin saga took a surprising turn as the Central Bank of Mars has expressed interest in buying 100 of the proposed coins."
There is another coin in the news that shows how a growing number of people are becoming aware of the inflation of risk. In the first week of January, there has been a massive surge in sales of silver American Eagles from the US Mint. The sales of these coins hit a record 3.94 million ounces, already surpassing the entire December total of 1.64 million ounces.
If the United States of America mints a trillion-dollar coin, it would be a clear signal to our creditors that America is broke. Once faith in the dollar is lost, the financial charade is over. The Chinese and Japanese both have about $1 trillion in our Treasury bonds. I'm sure they are horrified to learn that we are giving serious consideration to a plan that would devastate the value of their net holdings.
Our monetary system is based almost entirely on faith. The only thing backing our fiat money is the ability of our government to print more paper currency. Once the trust in the dollar is broken, we will eventually see the dollar decline in value.
It's is no great secret to the holders of our debt that America is running a Ponzi scheme. There is no alarm on their part because they generally believe they can sell their bond holdings if the market turned sour. When people realize the U.S. is not a good investment, the change in sentiment will likely occur instantly, creating panic selling.
The need for quick action ahead of the crowd reminds me of the 2003 fire at the Station nightclub that killed 100 people and injured over 200 others. A set of pyrotechnics ignited flammable sound insulation foam in the walls and ceilings surrounding the stage. Once the fire started, it only took 1 minute before the whole club was filled with deadly black smoke. Because the vast majority of people initially stood around watching the fire grow for the first 40 seconds, it only took 10 seconds for someone to move from the front of the stage to close enough to the exit to ensure their survival.
We've had years to watch the hyperinflation fire grow in size with the issuance of a mountain of federal debt. Once a dollar collapse starts, history shows that the value of a currency can be largely wiped out in just a few days. I have several friends who have their entire life saving in government debt assets, and they refuse to take measures to protect themselves because they have an unwavering faith in the dollar.
To be truly protected in this world, you have to be a believer in Jesus Christ. A stash of gold, guns, and groceries may rescue you from an economic meltdown, but it can't save you from the coming Tribulation judgment. The only cure for the curse of sin is faith in Son of God.
“In my Father’s house are many mansions: if it were not so, I would have told you. I go to prepare a place for you. And if I go and prepare a place for you, I will come again, and receive you unto myself; that where I am, there ye may be also” (John 14:2-3).
Future Is Now
Having just returned from Future Congress II at Dallas, a number of things about what was discussed/learned while there are firing in the synapses. Chief among them are Hal Lindsey’s words spoken during the Saturday evening session. The Late, Great, Planet Earth author and The Hal Lindsey Report anchor said the following: "The Bible says the United States must fall. And it is falling. We've passed the point of no return. America as we know it isn't going. It is already gone."
My reaction upon hearing his words was to say in a whisper to myself: “It is true.”
Like Jack Kinsella noted in his Omega Letter of Wednesday, January 9, the reaction to Dr. Lindsey’s stunning declaration was absolute silence. It was as if everyone in the audience was so accustomed to believing the statement’s factuality that it failed to register on their concern seismographs. Most all indicators point to the reality that the United States of America has been weighed in the balance and found to be unworthy to continue, like Babylonian King Belshazzar as presented in Daniel 5: 22-28.
Those who study Bible prophecy and consider current issues and events in that light frequently speculate about just how much time might be left for America and the world before God’s hand of judgment begins to fall. I fear we all too often do disservice to the Lord’s commission to be watchmen on the wall when we present the mindset that things aren’t yet at the point of incorrigibility. We are often remiss in speaking up when it is stated that there will be the mythical “revival” about which we hear, but which is found nowhere in the Bible for the end of the Church Age.
Can there be revival? Of course, the answer is yes. God calls all sinners to repentance; therefore, there remains the option open for repentance so long as God calls. However–again—there is no mention in Bible prophecy of revival for the end of the Church Age (Age of Grace). As a matter of fact, Paul the apostle and prophet tells us that evil men and seducers will grow worse and worse, deceiving and being deceived. He points out as recorded in the perilous times verses of 2 Timothy chapter 3 that the end times will bring about anything but “revival.”
Perhaps no other symptom of the age has struck me in a more profound way, as I considered the writing of this commentary, than the report published by Planned Parenthood, the organization that presides at the center of one of America’s most egregious sins–the annual murder of millions of babies in the wombs of their mothers, the shelters where they should be most safe from the horrors of this world.
The report gave the following facts about the infanticide, and it is indeed infanticide, because God’s Word indicates He considers people as individual human beings from the moment of conception.
Planned Parenthood’s annual report from the 2012 fiscal year reveals a record number of taxpayer contributions and abortions performed.
During the 12 month period, Planned Parenthood received $542 million in taxpayer money. These funds came to the organization through Medicaid reimbursements and government contracts and grants. The amount of government money received accounts for nearly half of Planned Parenthood’s operating expenses for the year.
The annual report also revealed that the organization performed 334,000 abortions, which according to previous reports is a record number. (The Washington Examiner / http://www.inquisitr.com/473890/planned-parentohood-record-numbers-taxpayer-funding-and-abortions/#e5UtrxaaeDvkhie3.99)
Marjorie Dannenfelser, president of Susan B. Anthony List, stated the following, giving her opinion that reflects many who see abortion as a national sin against the God of heaven:
While government subsidies to Planned Parenthood have reached an all time high, so too has the number of lives ended by this profit-driven abortion business. Destroying nearly one million children in three years is not health care and does not reflect a concern for vulnerable women and girls. (Ibid.)
Franklin Graham, son of evangelist Billy Graham, recently put his finger on the direction the nation is taking and upon the only hope for a cure for America’s ills:
“For far too long, as a nation we have neglected – and even rejected – the Word of God and His commands. Yet the Scriptures are mighty, able to penetrate even the most hardened and darkened hearts with convicting, life-giving power… This is the only cure for a sin-sickened country that is about to slip into a moral abyss, and it is why we must proclaim the Good News.”
Graham wrote further that America’s financial problems “are nothing compared to the spiritual and moral cliff that is far more destructive to our nation than any economic concerns.”
The time when Jesus returns will be the worst in human history is the theme that runs throughout Bible prophecy for the last of the last days. We are there. The future is now.
According to our minute-by-minute news headlines, it seems violence might be very near Genesis 6 levels.
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