Trillion Dollar Pay Day Loan

Trillion Dollar Pay Day Loan

payday_loans

Referring to the constant rumors of a Portuguese bailout last year in Europe, Jean-Claude Juncker, the prime minister of Luxembourg, said “When it becomes serious, you have to lie.” 

For weeks the Eurozone ministers lied to the public about the behind-the-scenes bailout that they were working on.  But here in the US the politicians aren’t lying about the next “crisis” and what to do about it, which is the debt ceiling; they are openly floating new ideas like a pay-day loan for the Treasury.

Instead of living within its means, and instead of dealing with Congress as the law is written, Tax-Cheating Timmy Geithner, the Treasury Secretary, is considering the idea of minting a $1 TRILLION platinum coin as a work-around for the coming debt ceiling showdown.

Section K of the law pertaining to the Treasury’s ability to mint coins reads  “(k) The Secretary may mint and issue platinum bullion coins and proof platinum coins in accordance with such specifications, designs, varieties, quantities, denominations, and inscriptions as the Secretary, in the Secretary’s discretion, may prescribe from time to time.”

Platinum is very expensive because it is very rare.  It currently trades at about $1,550 per ounce.  So one would then wonder “just big would this ‘coin’ be?”  Some estimate that the coin would have to be ~18 thousand TONS!  Although this is problematic enough, there is another problem: total global platinum production from the beginning of time is estimated to be just 16 tons. 

Hmm, this seems to be a big discrepancy.  Oh wait, the law above reads that Tax-Cheating Timmy can simply use his discretion to assign value to this make-believe coin.  By simply stating that its value is $1 trillion, it is so.  Said another way, like the paper dollars in our pockets, the coin is a fiat coin…backed by nothing and created out of thin air.

"Whenever destroyers appear among men, they start by destroying money, for money is men's protection and the base of a moral existence. Destroyers seize gold and leave to its owners a counterfeit pile of paper. This kills all objective standards and delivers men into the arbitrary power of an arbitrary setter of values. Gold was an objective value, an equivalent of wealth produced. Paper is a mortgage on wealth that does not exist, backed by a gun aimed at those who are expected to produce it. Paper is a check drawn by legal looters upon an account which is not theirs: upon the virtue of the victims. Watch for the day when it bounces, marked: 'Account overdrawn.'"  - Ayn Rand

The whole idea is beyond absurd, but let’s go further.  Why not simply call it a $16-trillion coin and wipe out the national debt.  Oh what the hell, let’s just say it’s worth is $100 trillion so we have a little pocket change left over for the profligate spending idiots in Congress.

Like average Americans using a Pay-Day Loan to get by until the next paycheck arrives, the US Treasury may produce its own version of a Pay-Day Loan…by simply creating a ludicrous coin out of thin air.

Trade well and follow the trend, not the perma-bill OR perma-bear "experts."

Best Trades to you,

Larry Levin

Founder & President- Trading Advantage

TradingAdvantage.com

Value Areas:

 ES 1460.75 / 1455.75

POC… 1458.50

YM 13360 / 13324

NQ 2725.00 / 2716.50