A SIMPLE TRILLION DOLLAR COIN
Barack Obama can solve the coming debt ceiling crises by simply ordering the United States mint to produce a single trillion dollar coin. He can then take that coin and pay off government debt.
Simple solution to a complex problem. He doesn't need Congresses approval to do it either. He doesn't have to get in the mud and wrestle with House Republicans. He doesn't have to worry about talks dragging on and on until the last desperate second. He can avoid a worldwide recession which would happen if we were unable to pay our debt.
The United States is still the most important economy on the planet. Yet Republicans in Congress are threatening not only our economy, but the global economy as well. When we sneeze, other nations pay attention and adjust accordingly.
Economics is all in the mind. It's something we created as a way to trade goods with others. We put an arbitrary price on a product and put out on the market. If the consumer likes it, they buy it. If the price is too high we do our best to market it to those who can most afford it. So not only do we have to build the car, we have to have to market it and advertise it. Other expenses occur. Special markdowns or incentives for dealers are built into the cost of that car. Add all these figures up and it costs about fifteen thousand dollars for the average full size car to roll off the assembly line and into the dealer’s showroom.
Small cars don't have the return on investment that larger, more expensive models do. In other words, the smaller the car, the lower the profit. I'd rather sell you a fifty thousand dollar vehicle instead of one that costs twenty grand.
Yet all these prices are arbitrary. We have an economy that values transportation so therefore it's in our best interest to make a car that provides not only transportation but gets good gas mileage and is cost effective to repair. But there are also development costs. Vehicle manufactures spend millions designing cars and that cost is also included in the price.
We could have an economy that prices cars at fifteen or twenty dollars. We could also have an economy that prices them in the millions. It's just numbers that we made up.
World economics is certainly more complex with the value of currency being an indicator of a countries wealth. So all Obama has to do to pay off Americas debt is make a trillion dollar coin which seems a lot easier way to solve the financial crises without all the drama.