The theory of the one trillion dollar platinum coin has been around a few years. But recently Krugman decided to take a stance pro-coin. http://krugman.blogs.nytimes.com/2013/01/07/be-ready-to-mint-that-coin/
Should President Obama be willing to print a $1 trillion platinum coin if Republicans try to force America into default? Yes, absolutely,” Krugman wrote. “He will, after all, be faced with a choice between two alternatives: one that’s silly but benign, the other that’s equally silly but both vile and disastrous.
An increasingly divided Federal Reserve faces stubbornly high unemployment and emerging threats of inflation as its exclusive group of policymakers gathers this week.
They’re likely to do the twist.
Make that Operation Twist, or at least a revamped version of the 1960s Fed effort that got its name from the popular 1960 dance tune by Chubby Checker. The strategy was largely considered a failure at the time but has gained new traction in these difficult times.
There are expectations across the market that a stimulus measure the Federal Reserve might announce this week will end up hurting investors in the very economy it's trying to revive.
Some market participants expect the Fed, in its two-day policy meeting starting Tuesday, to try bolstering the economy by announcing a reduction or complete elimination of the interest it pays banks for storing excess cash at the central bank. Goldman Sachs said there's a 50% chance this will happen.
The goal is to push banks to start lending and get the economy flowing.
The Governing Council of the European Central Bank (ECB) has decided, in coordination with the Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank, to conduct three US dollar liquidity-providing operations with a maturity of approximately three months covering the end of the year.