The media, as you know, has been joking about a Trillion Dollar Coin for the U.S., embellished with a flattering, smiling portrait of Barrak Obama. It is a great talking point, and also inspirational.
I was wondering who would accept such a coin. China? Japan? Qatar?
Actually, if instead they were to mint some Billion Dollar Coins, and perhaps even Million Dollar Coins, that might be a practical and very exciting idea. Can you imagine, countries could accept those tokens as a symbol of the debt; and then exchange it freely with trade partners, who could trade it further on.
So, the need for default swaps and such-like would be overcome, and become more transparent and tangible. So, for example, Brazil could have coins to the value of 250 Billion Dollars, and exchange them with whoever they wish, Spain, Russia,China, India, Iran, whoever. Those Million and Billion Dolar Coins would become collectors tokens, each nation trading for these to gain or decrease their political and stragetic trading partnerships.
Maybe a world picture could emerge where Israel or Iran would try to collect Two Trillion Dollars worth of such coins, to try and shift the balance of power in the Middle East?
I think peace and stability would reign supreme, and all nations would realise the value of such stability and peace, and how much human labour and innovation and gone into accumulating and servicing such debt and how it is in everyone's interest to keep the debt alive and with it the quest for peace and co-operation and co-existence between all nations. Aren't all human communities and nations better off safe and sound, eating, drinking and being merry, visiting each other's territory as tourists, and enjoying the fruits of world culture?
Who knows, there may even come a time in the future when there will be a need for a higher denomination coin, and the Trillion Dollar Coin will actually come into being?
In the meantime, I pray for continued world peace, and continued worldwide economic Recovery.