Trillion Dollar Coin
24th January 2023
ZMan isn’t buying it.
One of Shakespeare’s most famous lines is from Henry VI. The pretenders to the throne are plotting and a character named Dick the Butcher says, “The first thing we do, let’s kill all the lawyers”. The line has been interpreted many ways within the context of the play, but most people remember it at face value. In order to get anything done, you must first get rid of the hairsplitters, gainsayers and schemers that have always defined the legal profession. It is a lovely thought.
Like all humor, it is funny because it contains a kernel of truth. Lawyers, given enough time, can fashion an argument for or against anything. You see this in the recurring debate about the trillion dollar coin. This is the claim that the executive can get around Congressional spending and borrowing limits by minting a trillion dollar coin. The mint would strike a coin whose value would result in one trillion in seigniorage . This is the difference between the value of the coin and its cost.