A Quick Debt Ceiling Fix
Posted at 2:15 p.m. on Dec. 5, 2012
James Pethokoukis at the American Enterprise Institute highlights a debt ceiling solution that doesn’t require any spending cuts, tax increases, or even congressional action: Mint a few trillion dollar platinum coins.
“There are limits on how much paper money the U.S. can circulate and rules that govern coinage on gold, silver, and copper. BUT, the Treasury has broad discretion on coins made from platinum. The theory goes that the U.S. Mint would create a handful of trillion dollar (or more) platinum coins. The President would then order the coins deposited at the Fed, who would then put the coin (s) in the Treasury who now can pay all their bills and a default is removed from the equation.”
Cullen Roche: “It sounds rather silly of course. But it highlights how ridiculous the whole debt ceiling debate is to begin with. After all, the debt ceiling is only reached because Congress ALREADY voted to spend the money that would cause us to get there.”