The One Trillion-Dollar Platinum Coin. Yes they are really talking about this inside the beltway. Folks are discussing the one trillion-dollar coin as a way to avoid a fight over the debt ceiling. Also
the one trillion dollar platinum coin would be used to pay the government’s bills. So just how does this scenario get played out?
The United States can’t just print paper money every time it exhausts its borrowing options, but the US however, does have leeway when it comes to some types of coins. According to those in the know, “There are limits on how much paper money the U.S. can circulate and rules that govern coinage on gold, silver and copper. The Treasury has broad discretion on coins made from platinum.”
Seeing as the Treasury can’t simply create money out of thin air to pay its bills, there is however, a technicality in the law. That technicality says the Treasury has special discretion to create platinum coins of any denomination. Now you can see where this is going. Those who are putting forth this idea envision Secretary of the Treasury Tim Geithner authorizing the minting of the coin.
Then being the green individual that he is, Geithner can take a short walk across the Ellipse to the Federal Reserve and deposit it in the Treasury’s bank account. After waiting for his receipt, the U. S. Treasury is credited with One Trillion dollars. Yes the idea seems outrageous, and it’s been discussed repeatedly since the start of the new year.
While this bit of smoke and mirrors is going on, the one thing that the proponents of such action have failed to take into account is the amount of the current U.S. debt. The current debt stands at $16,444,402,750,121.35, and simply one coin isn’t going to eliminate much of anything.
All of the talk ongoing in Washington centers around raising taxes and not how to cut spending. The hero of the day in the entire mater is Representative Greg Walden (R-OR) who announced plans to introduce a bill to stop a proposal to mint high-value platinum coins to pay the federal government’s bills.