Is it Time for the Trillion Dollar Coin?
Posted at 9:30 a.m. on Jan. 7
As lawmakers appear poised to enter yet another fight over raising the debt ceiling, Joe Weisenthal notes the growing chorus in support of the “trillion dollar platinum coin” loophole.
“Although the Treasury can’t just create money out of thin air to pay its bills, there is a technicality in the law that says the Treasury has special discretion to create platinum coins of any denomination, and the thinking is that Tim Geithner could make the coin and walk it over to the Federal Reserve and deposit it in the Treasury’s bank account.”
“Yes it’s silly to think of funding yourself with a coin, but it’s even sillier to think that defaulting might be a good idea, so you might as well do it.”
Kevin Drum argues that such a move might not be legal: “No particular restrictions were placed on the design or issuance of platinum coins, but this…was plainly intended to apply to bullion and commemorative issues for coin collectors. That’s all.”