The US Government's Trillion Dollar Coin
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- čas přidán 20. 11. 2019
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Lel
People who are happy about the fall of the Byzantine Empire: Angry noises
May I ask what Byzantium has to do with any of this?
I'm feeling sad about the fall of the British Empire.
HAI... The fun version of wendover
Just go to Zimbabwe, they've got quadrillions
What happens when you give Mugabe a thriving farmland, economy, and industrial center? *Rhodesia falls, everyone starves, and everyone is poor*
Not anymore, it's venuzula now
Not anymore! Looks like you’ve been sleeping under a rock for a few years. They adopted the US Dollar a few years ago. Makes sense because of your name. Nice try kid
Kim Jong-un Go away Kim, it’s not like your economy is much better
Where were you between now and a few years ago? They adopted the US Dollar. You got exposed by Kim. People like you is why COPPA is targeting creators. Kids like you shouldn’t be on the Internet
At the Government level money really stops making any sense
it's called Fiat currency, "Fiat" means "declared", it's money that exists because the government declares it to exist, and has no real negotiable value except in the imagination of people...
@@tylerufen And yet when other countries print too much money they end up with a worthless currency!
But...the government _does_ make cents...
@@tauceti8060 Cos they don't have other nations to underwrite it. The US does, conveniently enough...
@@ArawnOfAnnwn
No it doesn't.
The debt ceiling is like every one of my self-imposed deadlines.
LMFAO
The debt ceiling is like what I say I'll do tomorrow I would explain but I'm sleepy so I'll do it tomorrow.
Fr
Well, your self-imposed deadlines are with good intentions
That thing is anything but
@@hcn6708 The debt ceiling started good intentioned. It was to make winning WW1 easier by allowing the president to borrow whatever he wants TILL THE CEILING. Prior to that, every single debt had to be approved by Congress.
Want to finance a loan for a purchase of artillery piece from France? Gotta get it approved by France. Want to get a loan to modernize the civil service? Gotta get the loan approved by Congress as well.
It worked pretty well but then Republicans in 1995 repealed the rule that allowed debt ceiling to be automatically raised when budgets are approved (cuz, you know, you can't argue against financing shit you've already decided to pay for).
Cashier: Sir, your total will be $0.99
Me: Okay, here is a $1 Trillion coin
Now my change. 🤣👌
*Keep the change*
*now gimme the 999.999.999.999$ of change*
keep the change
cashier: k thnx bye
US has a Trillion dollar coin,
Pawn Stars be like: I'll give you 50 bucks
Trillion is easy to spend all in one place so tge coin is valid.
It gets tricky however when you take Scrooge's cash from him cuz tgere was a shortage of cash.. and give him a single bill worth like 10.000.000.000.000.000$ .. that is tougher to spend in one place.. I guess you could offer to pay all healthcare debts and such for all for the next century perhaps..
is pawn stars the new gamestop trade-in meme?
Damn, Rick will be taking a huge risk here.
Underrated comment😂😂😂😂😂👍🏽
@@Whoolgans yes and they deserve it... all pawn shops deserve it
Imagine popping one of these bad boys in a vending machine.
Edit: nice
@GreenTeaKitKat or someone a trillionaire because he was getting 25 cents in change for the 1.75 bottle of coke he bought with 2 bucks.
Not much would happen, you would just instantly buy the company you out the coin in, and perhaps even the building beside the vending machine and all it's land, and probably that company too which owns it 😂.
“There’s soda on the plane!”
You’ll win the jackpot except of launching money it’s launch every soda in a vending machine all over the contry
Imagine throwing it at a stripper. First (s)he be like WHAT THE FUCK! _Then_ (s)he be like WHAT THE ACTUAL FUCK!
“If the government can’t borrow more money, why not make more money”
Germany, 1920
Actually just making money works perfectly fine, and it also did in the past in the US. It is not really much different from when banks create it. The problem with Germany was, that they printed too much, so they did have to pay back less of reparation.
@@OnkelJajusBahn the biggest problem was the rest of the world was bitter over WW1 and blamed 100% of it on Germany, therefore causing WW2.
@@OnkelJajusBahn tell that to the people who needed a wheelbarrow of money to buy a loaf of bread in pre-World War II Germany!
@@piperdragon3200 My point was just, it is not the fact, that states print money alone, that ist the problem. The problem ist that Germany deliberately caused inflation.
Deflation. Germany had a Deflation.
*1 trillion dollar coin.*
GameStop and Pawnstores in a 50mile radius:
“I’ll give you 10$”
But that’s for credit at gamestop , cash would be 30% less
I see. Joostop is everywhere the same.
Government: Let's just imagine we have more money. Problem solved.
Me trying to scrape by with 2 jobs: wtf.
Fundamentally what you are describing is a transition to communism :)
Gubernamental economy is crazy, nothing makes sense.
...and that's bad why?
@@brazeiar9672 No, that's not what he's describing at all.
@@brazeiar9672 If only we could transition to communism
As someone who recently bought a commemorative coin from the US Mint, I wonder if there's a legal argument that the coin couldn't be made under that law unless it was offered publicly for sale...
my brother in christ what would anyone who bought it that isn't the treasury do with it? They can't sell it at a higher price so long as the US treasury has much power, and by the time that happens, it will have depreciated in value due to inflation. Essentially they'd be donating $1,000,000,000,000 to the US government
not even just what the other people said, but who the heck is gonna buy that!!!! even elon musk and jeff bezos together couldnt put their networth together to buy that!!
I mean if somebody does buy it the mission is still accomplished, the govt still gets $1T
Okay but how do you get like the richest people in the world to sell every stock and don't put the stock market into panic mode just to buy a single coin lmao, also remember that was in 2013, and I think at the end they never created the coin anyway
I guess sell it to themselves.
Man, the last time US monetary policy came up, I was so out of the loop I could hardly contribute to the conversation. Thanks for saving my social life, HAI!
Here I was hoping to see another "Simpsons did it" in real life. But could you imagine if they actually had minted that coin, and not yet melted it down? It could be the prize for winning capitalism. Hit a trillion dollars in net worth, have a trillion dollars worth of assets seized in exchange for one of those bad boys.
US: trillion dollar coin
Villager:ill give you 2 dirt no more
2 dirt?! It's always 1 piece of flint for me!
More like 1 seed
Gamestop: $7
Him in reality:I'll give 1/4000000000 of useless ore
Me: Win win, he gets money and I get infinite di-
**POW**
US: lets print more money, what could possibly go wrong
1920s germany: *chokes on schnitzel and beer*
1940's Hungary: *Has a heart attack
Zimbabwe: *faints*
US has been printing extra money since after WW2. Ask any international politics maniac.
AK every country has lmao every cu try has inflation which is necessary for a functioning economy
And Hitler
*laughs in Venezuela*
Hyper inflation: “allow me to introduce myself”
Its only hyperinflation if you dump the cash into the economy.
If you just use it to lower debt owned by yourself, its just cancelling out the numbers
@@TheSkyGuy77 ;-;
@Hakim Habib if its held by your Treasury and is called an "asset" rather than a liability (and other nations are required to have some of those assets to trade with you), it doesn't cause hyperinflation.
Because that's what the US has been doing since the 1970s.
Argentina and Venezuela: Allow us to introduce ourselves
screw hyper inflation. we have money
The United States sounds an awful lot like a Pyramid Scheme...
This is the case with nearly every country.
That "bell curve tax system" joke seems to have gone over most people's heads.
It was so dry and deadpan, it actually took me a second.
that was pretty good
Yeah, it sure went over mine. What's the joke?
@@theviniso those with very low income pay very low tax rates. As your income increases, your tax rate goes up, until you start getting into the "Rich" category, at which point you start paying less because you can buy politicians and write tax laws for them. For example, Netflix paid no federal income taxes this year. The things they do pay taxes on, like capital gains, are taxed at a lower rates than other forms of income. (edited for correction, clarity, and specificity)
I didn't laugh because it's true (:
How to become a trillionaire: find that coin
Bus drivers would NOT like this coin.
Hey there Avery. Koala's here.
@@binarysignals9593 But hey, they'll rather take that coin ;) For themselves
Go to Zimbabwe
Did you escape Cuba? If you did I hope you are living better in the US.
Hi from 2023, the coin is back
Welp we’re back
3:10 "...the type of idea only a drunken second grader could suggest."
I genuinely lost it at that.
aryan bhaskar or a 1920s german chancellor
@@ala0284 lol
@@theworldoverheavan560 Actually modern monetary theory says just that, so it is not that absurd.
You could definitely buy a plane with a trillion-dollar coin.
Sounds like you've been listening to that wendover guy.
try more or less 9 425 boeing 737
In UK, you could buy 25,500,658 fully specked Toyota Corolla hatchbacks with a trillion-dollar coin
You can own a space monopoly, a space station, a Martian base, Lunar base, mine asteroids, do plenty of space science & projects, and still be left over with 10's of billions left 😉
@@jur4x A 1 trillion dollar coin wouldn't be worth anything in the UK as it is not considered currency. Fundamentally its value is the value of the metal since everyone knows its cannot be cashed in for 1tn of anything. The UK has similar bank notes to these btw, and just like this coin they are totally worthless outside of the UK central banks.
The US: We're in absolutely incredible debt
The US: What if just say we have more money? 😳 haha jk... unless?
This comment broke me
lol "kinda clickbaity titles to get you to watch" i love the honesty of this channel
I don't think any of my vids are clickbaity and when he said that it was kinda funny
Imagine the bank heist to steal one of these things.
Imagine pawning it... Everyone would know where you got your coin from.
@@sleeptyper Im sure there would be a buyer out there somewhere. Heck I'd sell it to China for a billion dollars lol.
@@FROMdaHOOD15 IRS would get interested...
Rage Pie Sounds like the plot of a movie.
@@sleeptyper only if the IRS can catch you before it all goes into an offshore swiss bank
Well, guess who’s back
I'm not going to lie. That graph of the debt ceiling over the years blew my mind. I had no idea about that. Why do they keep raising it so much? Why not just cut down on spending?
It took 21 years to get to $7 trillion and only 6 years to get to $14 trillion!
Wtf!?! Is that adjusted for inflation? Wtf?!?!?!? I wonder if Visa or MasterCard would raise my limit like that! Lol
Nobody wants to stop sending because that would require making hard choices.
The debt ceiling itself is dumb though. The debt is just the cumulative result of running a deficit. The way to fix it is to run a surplus. All a ceiling does is cause a periodic crisis due to the risk of a default on the debt. A default would just make the whole situation worse. The debt would be just as bad as before, except now the government would end up paying a higher interest rate to service it. They could play games with quantitative easing, but that could cause inflation at that scale.
Nobody wants to make hard choices, and that starts with the voters...
@@RichFreeman Modern American Economies are built on the notion that growth is good for its own sake. That's a cancer mentality. Growth comes from new tech and new industry. Not from the Fed.
@@JoshSweetvale thats why the feds are bad, welcome to libertarianism here is your free gadsden flag and sign that says "F THE GOV"
@@nitroxylictv Eh, sorta.
Government's not allowed to do urban renewal or help the poor more, so it's spinning its wheels.
Because it is completely inconsequential, everyone screams bloody murder about the debt but it literally doesn't matter. The US operates it the exact same way a business does, more benefit is generated from the spending than is lost due to the increasing debt. This is why companies who have plenty of cash will still take on debts when they can get the money at a low enough cost.
"Since we decided a few weeks ago to adopt the leaf as legal tender, we have, of course, all become immensely rich.”
I suggest we revalue the leaf by burning down all the forests.
RainbowRacer We must also burn down all the -trees- future military installations in the next continent over
AND WE INTERROGATED A GAZELLE!
1:36 Actually treasury bonds don't accrue interest, instead, they are zero-coupon bonds that are sold at a discount to par value. This discount can be converted into an annualized rate, but it is not interest accrued on top of principal.
I read that in this guys voice and couldn’t understand a word. Then I read it in my own voice and I understood it.
Imagine accidentally giving this to the waiter as a tip
Oof
One trillion dollar coin? That’sa spicy meatball
-Homer Simpson, probably
"I think I dropped a coin."
RIP
*le oof intensifies*
Zimbabwe: *are you challenging me*
"If the government can't borrow more money, what if they made more money"
1920s Germany enters chat
Very cool episode about an obscure loophole in minting legislation. However...
1:26 The Federal Reserve doesn't issue bonds, the Treasury does. Now with quantitative easing, the Fed does way more buying of bonds than selling of bonds. Think of the Fed as like a checking account with a zero balance, but the checks never bounce. They are allowed to create money buy spending previously non-existent money.
3:17 The Federal Reserve creates currency, yes, but it is not all backed by bonds. That would mean that there is only as much currency in the economy as there is federal debt - about $23T. There is far more US currency out there, and after all, the Fed only holds about a $4-5T balance sheet. The scary thing is that the Federal Reserve is allowed to issue as much money as they want, without any backing. Remember that we use a fiat currency that is not backed by any asset or debt, and that the Fed's responsibilities to issue currency is separate from its ability to buy debt.
I'm sure a few other finance nerds (like me) have something to say about this. Overall, a great video like usual but monetary policy is confusing and sometimes is easy to get messed up.
Imagine actually, ya know, enforcing corporations to pay their fair share in taxes? Crazy right?
But... but what about the poor politician's kickbacks and bribes for letting them get away with it :c
Imagine holding the global economy economy hostage to get your way? Crazy right?
You'd have to make lobbying illegal. NO chance of that.
Let's raise the tax rate on corporations so they move to other countries, so do the jobs. France did this.
@@waynethompson1461 fuck it, I can't afford housing anyway. If I'm gonna be in poverty it might as well be funny
So...every time they reach the number they said would be too much debt they just move the goalposts instead of trying to figure out how to pay it back?
Seems like a good plan.
"ahhh we'll figure it out next year"
That's because the debt ceiling isn't like a self-imposed deadline. It's a tool that Congress uses to force the president to do something. Congress sets both the budget (which the president is forced to spend) and the debt ceiling, making it a guarantee that the debt ceiling will be reached. That's because only Congress can raise it, so they force the president into something he doesn't want to solve this situation
I know right. I swear In my lifetime America won't die from war or internal unrest but from going bankrupt
Why even have a debt limit then?
@@XxowendanxXWe don’t! A “ceiling” that’s constantly raised is no ceiling at all!
Wow, I get recommend this right after watching a video talking about how we’re about to hit the debt ceiling by like the 28th of October.
It is the 18th
This is relevant again
Haha ikr :) every time the trillion dollar coin comes up i watch this video again :)
3:23 I think you misspoke. The Fed can create new money by buying new treasury bills. If they're selling treasury bills, then they're removing money from the market. I think there's some confusion in this video about the difference between the Fed and Treasury Department.
Even in that case no new money is being created, as you said they are buying new treasury bills. They had to have something to buy the treasury bills with.
Yeah I’m still stuck at that point in the video, I can’t figure out how that’s supposed to work.
@@Brained05 The Fed buys treasuries with money that did not exist before. The Fed literally creates money to buy treasuries.
Your description reads "Start browning more easily and safely"
I LOVE browning the web!
John Browning approves of this message!
Browned internet is delicious
FacePwn64 Hey man, if that’s what you’re into
Okay banana.
The way things are going, you may need a lot more of these soon.
Very interesting information. Thank you for recovery yesterday’s history lesson. Very awesome way to teach people these topics.
The Fed doesn't issue T-bills/bonds, the Treasury does.
The Fed: prints money
Treasury: :o
*Ron Paul Has Entered The Chat*
*Ron Paul is typing*
END THE FED
Based
Is gold money?
Bernanke: no
*Ron Paul has left the chat*
American people: Ron Paul? Nah.
I could be mad that you misled me about there actually existing a trillion dollar coin, but honestly the difference to me of them actually making one and just thinking about making one is minimal. Thanks for the recent history lesson!
Imagine finding one of these coins on the street. You'll never have to work again lol
Fun fact! The debt ceiling was made to help the government be more flexible with its deficit spending in World War II. In case the idea of setting an arbitrary number for the limit seems weird: don't worry, it is. Most nations don't use debt ceilings to regulate deficit spending and most of those that do pin it to a percent of GDP rather than a specific currency amount.
1:11 that bell curve tax bracket is so true lmao
If it was a straight up at the end.
Remember when we all thought $16 trillion debt was a lot….. we are over $30 trillion in debt in 2022.
This was my favorite ad transition yet. Well done!
*The floor is national debt*
*[Feds]:* "Fly me to the moon" 🎼
As a coin collector, the fact this does not exist makes me sad
the transition from the educative content to the publicity part is so smooth in your videos
4:50 the best excuse for clickbait ever
Instructions unclear, girlfriend left me for Dashlane.
imagine paying for a candy bar with that coin
But how heavy was the coin?
It's wild that this hasn't been made the premise of a heist movie yet
Me:I have to study
HAI: NOPE
I literally just had a test in my macroeconomics class about the Fed money supply. How if the Fed decides to print more money the value of the dollar would decrease and prices increase causing inflation because ppl have more money to spend on goods and services. I know it doesn’t have much to do with the trillion dollar coin but I just wanted to share what I learned 😂😁
Question. When was the last time Congress actually passed a unitary budget - as opposed to dozens of continuing resolutions?
imma buy a bag of chips with one of those bad boys and then the 7-11 COMPANY will have to give me $999,999,998.
So basically the federal government is a mega business with assets liabilities and stockholders via treasury bonds
"The idea was, if the government can't borrow more money, what if they just _made_ more money?"
*Weimar Intensifies*
I mean, you watched the video. It's not the same. If you just wanted to make a funny comment then understandable but a lot of people don't think further than the memes.
“You’re total is $8.95”
*rummage*”oooh sorry, all I’ve got got is a trillion… can you make change?”
This would have triggered the greatest heist in history to steal that coin.
The Trillion dollar coin was just a devaluation in disguise 😅
I think they’re going to need to make one of these this week
One important thing to note about the bell curve is that it curves the rate not the actual money taxed. The top 1% pays lower rates than us but their so rich they still pay 60% of all taxes in this country despite being 1% of the population
The stock footage @ 5:13 is so perfect.
That's the exact expression I have when I ask myself that very specific question.
Coming up on June 2023 I’m just commenting for when the algorithm starts doing its dark humor thing.
Hmmm.. this seems to have some new relevancy
"do de do de doo"
*CLANK*
"oh i dropped a quarter, eh whatever"
-Buy something for one dollar with this coin
-Watch the cashier count your change for the rest of eternity
3:57 - Doesn't that just highlight the incompetence of elected representitives. 535 reps in the US houses and not one notices this fundamental loophole in the legeslation.
Democracy in itself is very flawed, despite granting massive freedoms and concessions to the people, those same people generally doesn’t know what they’re actually voting for, and thus created weak governments.
Heads or tails for rich people
Imagine just popping this in your pocket and moments later, you lose it. *A trillion dollars.*
This channel advertises me things so smoothly I don’t even mind
As someone who lived through this (shocker, I know), this move caused a real concern that it would lead to inflation, which I feel you kind of skimmed over why it wouldn't lead to inflation.
It wouldn’t lead to inflation because it was a temporary solution not a permanent one. Once the debt ceiling was raised the treasury would just buy the coin back from the fed. So it’s like +1 and then -1. Inflation would just be the +1. And since the trillion dollar coin would be out of “circulation “ and no longer exist it wouldn’t effect the rest of the money that was out there.
@@beastrule Agreed. However, if the debt ceiling wasn't raised, or was not raised enough to cover the cost of that coin, then it would lead to inflation.
I'll have to watch the video again. I seem to recall it implying that the coin solution was a way to circumvent raising the debt ceiling rather than just delaying raising it (thus the source of my confusion).
If the latter than it would change the stakes of raising the debt ceiling from "raise it or the government shuts down" to "raise it or deal with rampant inflation".
@@hairyviking9248 in essence it would not particularly change anything as the trillion dollar coin would never been in circulation its only effect was too adjust the books to make it appear as if the government was a trillion dollars less in debt which would allow them to continue to borrow bond backed debt as they had been doing which they would actually use for spending. As a result no new money was actually going to be introduced into the economy meaning no effect on inflation while the coin would only exist until the debt celling was raised and at which point potentially thrown away with a simple +1 trillion dollars to be added back to debt on the books that had been removed.
@@TheRealLaking Forgive me if this comes across as thick headed, but if you check my last reply, I agree that as long as you raise the debt ceiling to above the value of the coin there won't be inflation.
At the time of this post our national debt just reached $30 trillion dollars. This means that our yearly interest payment is now >$600 billion dollars. To put that in perspective, farming subsidies are $20 billion, our overblown defense budget is $670 billion, and our medicare/medicaid budget is $829 billion. We could take every penny that jeff bezzos ($187b), elon musk ($256b), and Bill gates ($132b) have and just barely pay 1 year's interest payment on our debt. That paired with our current inflation rate of over 7% makes this video very topical
Are you saying that we could mint a $1T coin, not raise the debt ceiling and not cause inflation? If so, how? And more importantly, why haven't we done it 30 times already?
@@hairyviking9248 Its all politics in the end of the day the 1 trillion dollar coin would not be used to pay off any off the governments debt or for government spending. it would appear on paper as though the government was a trillion dollars richer once they were given the coin allowing the government to legally borrow the money it needs for its spending and debt payments. It wouldn't actually help for any real finical problems its effect being government being able to acquire more debt It's only use is as a loophole to avoid a law by politicians. It's not used because it would make any president who used it look bad politically facing criticisms from their opponents which might even include accusations of abuse of power infringing on congress ability to choose a debt level. It would also likely be a action tested in the supreme court as to whether the amount debt was really lowered in the eyes of the law and if more debt could be legally borrowed. However as the video states more and more recently a situation which both president Obama and Trump have faced occurs in which the sitting president faces a hostile congress which uses the necessity of raising the debt limit for the government to function to achieve their own political goals and so the trillion dollar coin can still be considered a "nuclear option" like other loopholes in US laws if a president was pushed to the edge and neither side was willing to back down it might be used unlikely it would be "30" times but at least until the gridlock ends and the debt limit could be raised through normal means. Although if it was done enough times by different presidents in might become the new norm
I want my 5 minutes, 56 seconds back.
No your lifetime outside of this video has forever been shortened
i love how smooth you transition from video to advertisements! lol
"our economy is in good hands" the govt: ayyeee trillion dollar coin machine go *coin noises*
I can only imagine popping that into a coinstar machine. Cha-ching!
What would you do with the resulting six bucks though?
Hyperinflation: im about to end this nations whole career
Nope. No inflation since there will be a buyback.
Me:
Creates $50T coin
Now, have $15T surplus
The first dollar bill the treasury was handed on their loan was a star note
It's called a "Bitcoin."
Nano, feeless, instant, secure. No new nano ever. Download the natrium wallet on your phone and go to a nano faucet and get some to see for yourself.
@@alexjohnward No, I don't think I will.
@@QueenFondue keep paying miners every ten minutes then, cheers.
House of cards
hmm I wonder why this is in my recommended
I love how self aware this channel is
Friend: i found a weird looking coin
Me: let me see that.
Hey and welcome to my video about Kinda Clickbaity Titles to Get You To Watch Something Vaguely Educational
I had a thousand dollar treasury bond that I invested in 14 years ago. The government invalidated it and refused to cash it. :(
I assume that is how they make money on those, just don´t pay all of them back out, what a dick move.
Got scammed
Drive Thru attendant: "That'll be $6.70"
Me: You got change for a trillion?
"Excuse me sir could you spare a dollar"
"Yeah sure here's one trillion"
1:13 "Graduated bell curve tax bracket system" I am crying laughing
T-bonds are just a guarantee of paying more in taxes in the future.
Unless the rate is lower than inflation, in which case less money (in terms of "real dollars" - i.e. adjusting for inflation) is paid out than is taken in.
Not necessarily true. If you invest it in stuff that saves money, i.e. more efficient energy generation or lower drug prices for example, then the T-bonds become a guarantee of paying *less* taxes (or getting more for the same) in the future.
If what you said were true every company taking out a loan would eventually go bankrupt, and yet you know that good investments are more important than acruing no debt.
@@PhysicsGamer you still have to pay taxes on the increase in dollars, even if that increase is less than inflation.
@@roflchopter11 ...No, you don't. That's the point. Under those conditions the principal from the original sale of the Treasury bond fully pays for the return on same. The total return from the treasury for the investor is positive in nominal dollars, but negative in real dollars.
@@PhysicsGamer and you pay taxes on nominal dollars.
Being in debt stops meaning anything when you can just decide that you aren’t at any moment.
I have a nasty feeling that we'll be revisiting this concept in the coming year
👏 👏 👏 you were right