Timmy elsewhereJuly 8, 2011 Tim WorstallTimmy Elsewhere2 CommentsAt Anorak, about the trillion $ coin. previousMore MurphnextOn this new group blogging lark 2 thoughts on “Timmy elsewhere” john b July 8, 2011 at 12:24 pm Erm, point missed I think. The $1trn coin is a solution to the specific problem the US faces right now, where a lackwit Congress is seriously considering forcing a default based on levels of sovereign debt that the US has no problem servicing, and that aren’t even a particularly high share of GDP by historical standards. It’s not a way of saying “this will end the US’s debt problem”, it’s a way of saying “this will end the utterly ridiculous and artificial, but potentially very serious, debt ceiling problem”. Roue le Jour July 8, 2011 at 1:34 pm At some point in the future the QE company (can’t remember its name) will be wrapped up and the government debt forgiven. (OK, maybe George gives Mervyn a cheque which he then hands to the treasury secretary who tears it up.) So buying bonds is exactly the same as printing money and giving to the government. Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website Save my name, email, and website in this browser for the next time I comment.