The $1 trillion coin story has been a hot topic in the political realm over the past week. To make a long story short, the nation is coming up on another debt ceiling debate and some creative solutions to avoiding default have been suggested, including the minting of a $1 trillion coin.
The U.S. Treasury Department has the authority to mint platinum coins and so, theoretically, a $1 trillion coin could be minted and deposited into the Federal Reserve Bank and voila, no debt ceiling concerns.
Yes, the idea seems a little far-fetched and according to Treasury Department spokesperson Anthony Coley, that idea is off the table. In a message to Washington Post columnist Ezra Klein, Coley said:
“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.” Source: Washington Post
Coley’s statement came on the heels of White House Press Secretary Jay Carney’s announcement on Friday, “There is no Plan B. There is no backup plan. There is Congress’ responsibility to pay the bills of the United States.” On Saturday, Carney added this statement to the White House’s sentiment on the issue, “Congress can pay its bills or they can fail to act and put the nation into default.” Source: CNN
I’m not an economist but I have to agree with Carney and Coley on this issue, minting a $1 trillion platinum coin wouldn’t solve the issue. Sure, it might put a bandage on the immediate crisis but it certainly isn’t a long-term solution to the nation’s debt crisis.
For now, I will join the rest of Americans that are looking to Congress and the White House to solve the debt ceiling issue…sooner rather than later this time, please.