Treasury Dept. rules out trillion-dollar coin

January 13, 2013

The Obama administration said on Saturday that it will not mint a trillion-dollar platinum coin to sidestep the debt ceiling.

“Neither the Treasury Department nor the Federal Reserve believes that the law can or should be used to facilitate the production of platinum coins for the purpose of avoiding an increase in the debt limit,” Treasury spokesman Anthony Coley said in an email.

Some economists and writers had pushed the Obama administration to mint a trillion-dollar coin if Republicans refuse to raise the debt ceiling.

Congress needs to approve most new borrowing, but an obscure provision of a 1997 law allows the Treasury secretary to mint platinum coins of any value.

The law was intended to allow for collectible coins, but some argued the president should use the power to prevent the government from defaulting on its debt.

Paul Krugman, a Princeton economist and columnist for The New York Times, acknowledged that the coin proposal was “silly,” but said failing to raise the debt limit would be “equally silly but both vile and disastrous.”

No comments yet - you can be the first!

Leave a Reply

Your email address will not be published. Required fields are marked *

Keep the Fake News Media in check.

Don’t let the MSM censor your news as America becomes Great Again. Over 500,000 Americans receive our daily dose of life, liberty and pursuit of happiness along with Breaking News direct to their inbox—and you can too. Sign up to receive news and views from The 1776Coalition!

We know how important your privacy is and your information is SAFE with us. We’ll never sell
your email address and you can unsubscribe at any time directly from your inbox.
View our full privacy policy.