Mish's Global Economic Trend Analysis

---

• Krugman Supports the $1 Trillion Coin; Why Stop There? I Support the $1 Quadrillion Coin
• Google's Self-Driving Car Takes on D.C.; Not Quite Ready For Real World ... Yet
• Humanoid Robots Play Music

Krugman Supports the $1 Trillion Coin; Why Stop There? I Support the $1 Quadrillion Coin Posted: 07 Jan 2013 09:15 PM PST There is a lot of crazy talk out there regarding the minting of a $1 trillion coin to get around the debt ceiling. Today Paul Krugman hopped on the $1 trillion bandwagon in his New York Times article 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. 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. The decision should be obvious. For those new to this, here's the story. First of all, we have the weird and destructive institution of the debt ceiling; this lets Congress approve tax and spending bills that imply a large budget deficit — tax and spending bills the president is legally required to implement — and then lets Congress refuse to grant the president authority to borrow, preventing him from carrying out his legal duties and provoking a possibly catastrophic default. Enter the platinum coin. There's a legal loophole allowing the Treasury to mint platinum coins in any denomination the secretary chooses. Yes, it was intended to allow commemorative collector's items — but that's not what the letter of the law says. And by minting a $1 trillion coin, then depositing it at the Fed, the Treasury could acquire enough cash to sidestep the debt ceiling — while doing no economic harm at all. So why not? $1 Trillion Not Enough Krugman asks "why not?" The answer should be obvious. It's crazy to think $1 trillion would be enough. A year or two from now, the Treasury would have to mint another coin, with the same silly debate we are having right now about whether the process is legal. Question of Legality I do not accept the idea that the proposed process would be legal. Others side with me as well. Here are a few examples: Sorry Folks, The $1 Trillion Coin Is Unconstitutional No, a $1 Trillion Platinum Coin is Not Legal If the $1 trillion coin is illegal, isn't the Fed illegal too? Nonetheless Tut! Tut! I say to Krugman detractors. Does any president care what is legal? Roosevelt didn't. Nixon didn't. Bush didn't. Obama didn't. We all know presidents are above the law and they do what they want anyway. Kidnapping, torture, wiretapping, holding people without charges in Cuba, data gathering of all sorts with drones and other measures without due cause and in direct violation of the constitution, so clearly the constitution is meaningless already. No one will possibly do anything if Obama breaks the law as Krugman wants. Krugman's major error is $1 trillion is nowhere near enough. Let me be first to support the idea of a $1 quadrillion coin.  Krugman's second error is in regards to whose picture should be on the coin. I propose this picture for the front of the coin. The back of the coin should be equally obvious. Paul Krugman Prays for America. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com "Wine Country" Economic Conference Hosted By Mish Click on Image to Learn More Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.

Google's Self-Driving Car Takes on D.C.; Not Quite Ready For Real World ... Yet Posted: 07 Jan 2013 02:55 PM PST CNN Money has an update on Google's self-driving car. This time, the car attempts to handle traffic in Washington D.C. The software and radar did reasonably well, but a human driver had to take over a few times. Please consider Toyota to reveal self-driving car research at CES Toyota will offer a glimpse into its self-driving car research on Monday, just ahead of the Consumer Electronics Show, in Las Vegas. The Japanese automaker recently revealed a five-second video of a Lexus-based research vehicle carrying a device similar to that used on Google's so-called self-driving car. Unlike Google's car, however, Toyota's research also involves vehicle-to-vehicle and vehicle-to-infrastructure communication, the automaker said in an announcement. Those technologies allow cars to wirelessly communicate with one another and with things like traffic lights and stop signs. For example, a car could signal vehicles around it when it stops or turns or when it encounters a slippery road surface. Similarly, a traffic light could wirelessly signal that it is turning red so approaching cars can automatically apply their brakes. Google's research car was based on a Toyota Prius, but Google and Toyota have not been involved in each other's research projects, according to a source at Toyota. Automakers generally prefer to use the term "autonomous driving" rather "self-driving" for these technologies because, even in the future, a human driver should remain at the controls of a vehicle, ready to take over as needed. The article has an interesting video of the Google test-drive in DC that inquiring minds may wish to see. Google is not interested in cars per se. Rather, Google is interested in making software that will go into every car. Each year, technology gets better and better. What's now promoted as "autonomous driving" will indeed morph into "self-driving". I suspect that most people are unaware of the possibilities. Eventually there will not be much need for skilled pilots or skilled truck drivers. At this moment I cannot put a timeline on "eventually", other than "sooner than most think". Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.

Humanoid Robots Play Music Posted: 07 Jan 2013 10:35 AM PST Perhaps giving away my age, I have never heard of the band "Motorhead" nor have I heard of their song "Ace of Spades". I have now. Popular Science reports Humanoid Robots Play Motorhead's Ace of Spades. I love robots. I love Motorhead. And so it stands to reason that I would love robots playing Motorhead. But I haven't actually been able to test that theory -- until now, thanks to some roboticists in Berlin, Germany. Having a four-armed drummer is pretty metal, and I would love to see what it can do with some Neil Peart, Mike Portnoy or Flo Mounier hijinks. Ace of Spades Video Hand movements on the guitar players were quite limited but the drummer was in full swing. How long will it be before humanoids are boxing or humanoid teams play basketball? Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.

You are subscribed to email updates from Mish's Global Economic Trend Analysis To stop receiving these emails, you may unsubscribe now.	Email delivery powered by Google
Google Inc., 20 West Kinzie, Chicago IL USA 60610