Published On: Wed, Jan 23rd, 2013

Ron Paul: Krugman’s $1 trillion coin idea “just another variant of the endless stimulus proposals’

Ron Paul on House floor

You Tube screen shot

As many of you know, the liberal, Keynesian sage, Paul Krugman introduced the idea of a $1 trillion platinum coin be minted and as Krugman suggests, then depositing it at the Fed. This would allow the Treasury to acquire enough cash to sidestep the debt ceiling — “while doing no economic harm at all.”

The idea is so foolish that Krugman even took a beating  from none other than Comedy Central’s Jon Stewart. The comedic critique bothered the Nobel Laureate so much that he wrote in an op-ed that Stewart, a comedian, was lazy and unprofessional.

On Monday, retired Congressman Dr. Ron Paul also responded to the the Krugman coin idea.

Paul states:

“To be fair, Mr. Krugman acknowledges that minting such a coin would be an accounting “trick,” but he is dead serious about this option for the Obama administration.  This then is the state of modern economics discourse in America, where a respected New York Times economist literally can propose creating “money for nothing” and have the idea taken seriously.

“Krugman’s suggestion is just another variant of the endless stimulus proposals, which purport to create greater aggregate demand in the economy by creating more money.  Whether this is done by the Fed or the Treasury is of little importance, as long as government is creating demand-side “growth,” however artificial.”

Quoting Austrian economist, Hans-Hermann Hoppe, Dr. Paul notes, “If governments or central banks really can create wealth simply by creating money, why does poverty exist anywhere on earth?  Why haven’t successive rounds of quantitative easing by the US Fed solved our economic recession?  And if Fed money creation really works, and doesn’t create inflation, why haven’t Americans gotten richer as the money supply has grown?”

It all boils down to one simple phrase–Fiat currency is not wealth.

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About the Author

- Writer, Co-Founder and Executive Editor of The Global Dispatch. Robert has been covering news in the areas of health, world news and politics for a variety of online news sources. He is also the Editor-in-Chief of the website, Outbreak News Today and hosts the podcast, Outbreak News Interviews on iTunes, Stitcher and Spotify Robert is politically Independent and a born again Christian Follow @bactiman63

Displaying 4 Comments
Have Your Say
  1. Ellee says:

    Democracy is bad on its own however in a republic it’s awesome what would you suggest we do about these psychopaths.

    I am not a constitutional scholar but I think there’s something in there that says when it gets like this we can and should replace them yet maintaining the constitution. democracy is simply mob rule

  2. Robert Reich says unionization of Walmart will get the economy growing - The Global Dispatch says:

    […] in the month, it was Paul Krugman who suggested the minting of a $1 trillion platinum coin and depositing it in the Fed to “sidestep the debt […]

  3. Sean says:

    I thought of a great way to teach Paul Krugman some basic economic theory. Print a 1 trillion dollar coin for every single American except Paul Krugman. Then when he goes to the grocery store and a loaf of bread costs 10,000 dollars he will have the first real economics lesson of his life. 🙂

  4. Ron Paul: Krugman’s $1 trillion coin idea &… – The Global Dispatch | PAULitics.US – Wake Up America says:

    […] Ron Paul: Krugman’s $1 trillion coin idea &… – The Global Dispatch […]

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