For the record, and Duncan’s benefit, I don’t think the platinum coin gambit would cause inflation in our current situation, I know that the president wouldn’t use it to buy bling, and I have said nothing about whether the whole thing could be “fixed” or not. I even said in my piece that I kind of get why it would be done, or at least why people would threaten to do it. I just disagree that it is legal or that the Courts would ultimately rule that it was legal.
The only reason Duncan and Krugman are talking crazy like this is to highlight how crazy it is to threaten to default on our debts. I hope they don’t really think they are making a reasonable argument on the merits. Because I see no reason why, using their legal analysis, B. Barry Bamz couldn’t buy the entire world with T Mac Geithner’s coins…and it would be legal just because.