What if a Platinum Coin?

What if the Treasury minted the platinum coin people have talked about, with a denomination of $1Trillion?

What would happen?

There would be much whining within the monopoly media that Obama had become a dictator: he's taken away Congress's power of the purse, the debt ceiling.

Obama could also simply declare, according to the 14th Amendment, that the President has to defend the "full faith and credit of the United States," by continuing to borrow whenever necessary, even if the Congress refused to pass an increased debt ceiling. That's a better alternative.

In either case, the Executive does have the power to maintain the currency. A strong case could be made: a President's first responsibility is to defend the nation, whether it derives from foreign military threats, or domestic economic ones. A default on the US dollar is a much greater threat than any of our last half-century's wars.

A default would probably spell the death knell for the greenback as the world's reserve currency. Interest rates could go sky high, stopping all growth; imports would become prohibitively expensive: a recipe for severe stagflation. Global depression could follow.

Yet, our powerful finance industry isn't leaning on the GOP to quash its debt-ceiling extortion. But then, Wall Street would dearly love to achieve some of the GOP's agenda: especially, privatizing Social Security (which doesn't contribute to the deficit), so maybe it won't press Republicans to stop, unless it looks as if Obama won't blink.

That's one reason why either the platinum coin or Presidential declaration, make sense. Either would stop the hostage taking. Then, if both sides still wanted to talk about deficit/debt reduction, they could have a rational discussion of corporate subsidies, of sensible cuts to the war machine, of reforms to health care and Medicare/Medicaid, by cutting costs without reducing benefits or raising eligibility.

Without the above Presidential action, negotiations would remain irrational: under duress on both sides. Just as in the fiscal cliff negotiation, corrupt deals under the table would pollute the actual bargain ("great" or not), in the rush to meet--or almost meet--the deadline. Reasonable solutions, like restructuring payment mechanisms in Medicare, (as is being tried in New York City hospitals), would be impossible to negotiate.

Wall Street, the GOP, and some Wall Street Democrats, wouldn't like either presidential response, because they'd have a harder time extorting their loopholes, gifts and grants. Conservatives would also bemoan the expansion of Presidential power--not that they opposed it under Bush II.

But maybe the US would finally get a government that governed more or less rationally, for The People.

What are the odds, if our Roman Senators don't get what they want, that the President would even try to get what the nation needs? Where is a backbone when backbone is needed? The selfish class has to be stopped. It would be ironic if a mere coin could do that.