(RepublicanReport.org) – In 1998, The Simpsons aired an episode in which Mr. Burns, a crafty nuclear energy magnate, escapes to Cuba with a trillion-dollar bill he has secretly kept for years. He ends up losing the bill to late dictator Fidel Castro in a comical twist that highlights the ridiculousness of such an enormously valuable piece of cash. Life can sometimes imitate art, though, and it appears our Democratic government is considering minting just such an asset to address our issues with the debt ceiling.
According to emerging reports, Democratic lawmakers are considering having the US Treasury mint a $1-trillion platinum coin, which it would then hand over to the government. This minting would wipe out $1 trillion in debt and circumvent the need for a vote on raising the debt ceiling, something Republicans are staunchly refusing to support. It would also create a precedent that could allow lawmakers to avoid increasing the debt ceiling again.
It would be the token of all tokens: a $1-trillion coin that backers say could solve the political impasse over suspending the U.S. debt limit.https://t.co/esx5CiUZ5h
— Los Angeles Times (@latimes) October 6, 2021
Sounds good, right? What’s the problem? Well, in a word, inflation.
By dumping that much cash into the economy without waiting for growth, the government would essentially be devaluing everyone’s assets, including existing money. Put simply; this means every American dollar will be worth less.
Inflation is already climbing at a record pace as we emerge from the COVID-19 pandemic. Is now the time to make it worse deliberately?
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