How Obama Could Beat The Debt Ceiling

[pspr]

Quote from zdreg:

you sell off your price inflated assets, but less of them. to pay the debts. e.g. in the uk there is a property bubble but little inflation.

Are you referring to the talk of the government selling land and some of the other real estate that it holds to pay down the debt? If so, has anyone put any numbers to what they could raise doing this? And, would they keep it out of the hands of foreigners? I would hate to pay a toll to China to visit Yellowstone!

 

[pspr]

Quote from Scataphagos:

Any president worth two dead flies wouldn't be scheming to "beat" the debt ceiling.

We both know of a President worth only one!

 

[PHOENIX TRADING]

Quote from RCG Trader:

You do not know my account size, sir.

This is funny anybody else notice when 99cent uses "sir" in addressing someone, he's getting the shit kicked outta him by the person he's addressing?

 

[Lucrum]

Quote from PHOENIX TRADING:

This is funny anybody else notice when 99cent uses "sir" in addressing someone, he's getting the shit kicked outta him by the person he's addressing?

He posts that his account is $1, then claims I/we don't know what his account size is.

Who does that?

 

[PHOENIX TRADING]

Quote from Lucrum:

He posts that his account is $1, then claims I/we don't know what his account size is.

Who does that?

I'm convinced 99cent is an affirmative action appointee adviser to timmy geitner and he thinks he can just add in a few zero's whenever he feels like it to his personal account.
I mean if it's good enuf for gubbermint dis herin dumbass black tard is oohed da same".

 

[Tsing Tao]

Quote from RCG Trader:

I said I might not be posting. Instead, I stayed and started a journal.

Watching the desperation in some of you guys is really fascinating!

So, okay, pspr. Let the pubs threaten a default, and watch what happens.

Where is your journal?

 

[Lucrum]

Quote from Tsing Tao:

Where is your journal?

-144 pips on his first trade and - 120 pips on his current position.

And this is supposedly his trend following "system".

It gets worse, he's also still claiming he makes money EVERY day.

 

[Tsing Tao]

Quote from pspr:

I think Obama has ruled out Option 1 but Option 2 could be used to create a nice little crisis for the U.S.

1) Constitutional Option. The debt ceiling forcing mechanism could be demolished if Obama invoked the “constitutional option” and unilaterally raised the debt ceiling. The 14th Amendment of the Constitution states the validity of the public debt shall not be questioned. Under this option, Obama would invoke the 14th Amendment and unilaterally raise the debt ceiling – a move that was encouraged by former President Clinton last summer in the height of the debt ceiling stare down. This option would trigger a wave of lawsuits and a likely Supreme Court decision. The biggest problem with going this route would be to – in effect – set up two tranches of Treasuries. Those that are not subject to a legal challenge (issued under the old debt ceiling) and treasuries that are subject to a legal challenge, which would likely trade at a discount.

2) Platinum Coin Option. This is even more theoretical than the Constitutional Option, though some argue that it is a stronger legal option. There are limits on how much paper money the U.S. can circulate and rules that govern coinage on gold, silver, and copper. BUT, the Treasury has broad discretion on coins made from platinum. The theory goes that the U.S. Mint would create a handful of trillion dollar (or more) platinum coins. The President would then order the coins deposited at the Fed, who would then put the coin (s) in the Treasury who now can pay all their bills and a default is removed from the equation. The effects on the currency market and inflation are unclear, to say the least. You would also likely trigger a wave of lawsuits similar to the Constitutional Option and create two tranches of treasuries. Both this option and the Constitutional Option are VERY low probability options

http://www.aei-ideas.org/2012/12/ho...few-trillion-dollar-platinum-coins-seriously/

The platinum coin option isn't an option. First, it is illegal for the Treasury to sell debt directly to the Fed for purchase. It must pass through the marketplace first for valuation. This isn't to say they won't try it, of course, or try to alter the laws. But this would be a huge step into direct and overt monetization, and likely cause havoc in the marketplace.

 

[Tsing Tao]

Quote from Lucrum:

-144 pips on his first trade and - 120 pips on his current position.

And this is supposedly his trend following "system".

It gets worse, he's also still claiming he makes money EVERY day.

Maybe he does make money every day. He just doesn't mention that he loses more money than he makes.