Hello, and welcome to TKNN Reports.
Today, we begin with Barney Frank. The now former congressman said on Morning Joe on Friday that he is interested in being a Senator. If Sen. Kerry is indeed confirmed to be Secretary of State, he would need to resign his Senate seat. Massachusetts governor Deval Patrick would then need to name a replacement. Any replacement would most likely agree to only serve until a special election. Earlier, then-Rep. Frank said he did not want to be the replacement, but he has apparently changed his mind. Barney Frank has also said that he has gone to Gov. Patrick about an appointment, but the governor did not sign off on anything. Barney Frank said what changed his mind was the fiscal cliff deal. The partial namesake of the Dodd-Frank financial reform law, Barney said he wanted to be part of the debate on the nation’s finance.
We continue now with the upcoming debt ceiling fight. Congressional Democratic leaders, Nancy Pelosi and Harry Reid, are apparently leaving all options open for the debt ceiling. This includes the 14 Amendment, where they would say that the amendment voids a debt ceiling. The 14 amendment says that the validity of the American debt should not be questioned. One other option that has been gaining traction is the Mint producing a high value coin to pay the debt. The plan is completely legal, but would most likely set Republicans in a fury. Some economists fear that a coin like that would make inflation rise wildly. Most proponents propose a one trillion dollar coin as a solution.
However, with the argument, the key debate is over the inflation effect. The reason that don’t want the coin is the same reason we keep the penny, to keep prices low. If you get rid of the penny, those prices will go up. Why go down to $0.95, when you can go up to $1.00? With money, it is kinda like a scale. You take the low numbers and the high numbers, and for the most part is they move together. So, if you use a trillion dollar coin, the high point goes way up, so the low goes up.
Well, thank you for joining us on TKNN Reports, please join us again next week.