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Yes, Congress Might Actually Invent a One Trillion Dollar Platinum Coin to Delay Hitting the Debt Ceiling

trillion dollar platinum coinDespite the debt ceiling countdown lawmakers are faced with, they still know how to give the American public a good laugh. The latest antics to surface in response to the ongoing debt ceiling issue is a proposal from Rep. Jerry Nadler of New York — which is also supported by some of the nation’s leading economists — to create a one trillion dollar platinum coin to pay off the country’s bills.

While inventing a coin embossed with a trillion-dollar denomination and calling it a day sounds too good to be true, technically, it’s feasible if President Obama decides to send to request to the U.S. Mint.

 

Is Minting a One Trillion Dollar Platinum Coin Legal?

It might sound implausible for the government to simply create a new piece of currency to solve its debt ceiling problems, but due to a loophole our government is considering exploiting, it’s not only possible, but technically legal.

While the Treasury is restricted in how high of a denomination of paper money, gold, silver and copper coins it can produce, platinum coins are not included among the restrictions. The minted one trillion dollar platinum coin can then be deposited into the Federal Reserve and used to pay off the nation’s debts.

Although the one trillion dollar coin won’t relieve the country of the over $16 trillion it owes, the coin would offer some headroom to keep the U.S. from crashing through the debt ceiling temporarily.

Can the U.S. Mint Resolve the Debt Ceiling Issue?

Opponents of the proposal argue that the proposal is ludicrous, and would compromise the stability of the economy, not to mention, the nation’s image. However, with Republicans resisting another debt ceiling increase and the President’s unyielding position on implementing spending cuts, the idea of a one trillion dollar platinum coin appears to be the only solution left in Congress.

Bloomberg’s Josh Barro commented that “Republican intransigence over the debt ceiling is juvenile. There is no particular reason that the president should not use a juvenile strategy in response.”

Ultimately, the likelihood that the Treasury will actually move forward with the one trillion dollar coin proposal is very slim, but the outlandish gimmick certainly has garnered the attention of Congress and the American public, and has made it clear that a resolution to the debt ceiling debacle needs to happen quickly before the next crazy proposal is put on the table.

(Image: American Mint)

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  • bbiceo

    It is also Socialistic. I caould see where the President may like the idea!

  • Arzantine

    Are we, as Americans, in such bad straits? Professional sports and other devil inspired businesses: i.e. tobacco, liquor, diaphanious clothing styles, lewd dancing, coffee, tea, are all lucrative businesses, why is it that America suffers from money stress? IT”S THE PRESIDENT’S FAULT! HE”S A SOCIALIST-LEANING CHARACTER. ALSO, YOU non-VOTERS ARE AT FAULT! YOU SHOULDA VOTED FOR ROMNEY! Now we are stuck with a tobacco-smoking, liquor-drinking, brain-numbed, leader of our nation.

    • rockround

      Professional Sports? Ok – I see where you’re going. Tobacco, liquor- still tracking… diaphanous clothing- had to look that one up, but as a father, still on board (just one “i” btw). But when you started throwing dispersions at coffee and tea, you lost me. I start each day with a devotional and a cup of coffee (thank God for Keurig) and I’ll not be persecuted for my beliefs! To paraphrase a great American, “To hell with you I’m going to Starbuck’s!”

  • Guest

    Why stop at $1 trillion? Why not just create a $20 trillion coin, pay off ALL of our public debt with it, so that we don’t have to worry about the debt ceiling until 2016…?

  • beadstallcup

    Trillion dollar coin? More political funny money by royal Washington decree. This time the gimmick is a “coin” with $1 trillion stamped on one side and Barky Obama’s image stamped on the other. HaHaHa. Are you kidding?! When, when I say, are the people of this country gonna catch on to the biggest CON and SWINDLE ever perpetrated by a criminal gang of hold up artists in our gov’t houses in Washington DC? When? Anyone who thinks a sack of corrupt politicians and their bureaucrats can create $1 trillion dollars out of a little piece of platinum weighing a few ounces is seriously brainwashed by the state controlled media, the Keynesian pseudo-economists and very just naive about where real wealth actually comes from. A $1 trillion dollar coin is an absolutely preposterous idea to anyone with a modicum of financial common sense! No foreign country in the world would accept a $1 trillion dollar coin from the con-artist politicians in Washington DC as payment of real debt. HaHaHa. REAL WEALTH, by the way, can only be generated over time through many voluntary value-for-value exchanges which take place in free markets –unhampered by greedy, parasite politicians and their thieving regulatory thugs. That is the only way REAL WEALTH can be and is generated. Working people’s REAL EARNED WEALTH and INCOME is, of course, stolen in great measures by greedy, self-serving politicians and other species of parasites on society. Some of these pick-pockets are very slick at pilfering things too, with the best of them being, of course, Washington politicians! The natural, unhampered, wealth-generating process will tend to concentrate wealth and property into the hands of small numbers of people who have a better product or service to offer. Or have a natural understanding of finance and business. These folks, by luck and pluck, get to be the “rich”. Unfortunately, the majority of people do not have “the luck or the pluck” and will not see any great increase in their personal wealth or property beyond a certain limit, work as they may. To a great degree, being in the right place at the right time with the right product or service or knowledge plays a big role in who gets to be rich and who doesn’t. A reality that a lot of die-hard “wealth seekers” just refuse to believe. But it is, nevertheless, true. Regrettably, many people will actually lose money and property during their lifetime. More than they will acquire on net. All this constant flux and change creates terrible inequities among folks, their jobs and their lifestyles — as anyone can plainly see in any city of the world. This will not change anytime soon. Certainly no gang to lying politicians can change this. Over time, conniving politicians have just come up with ways to rob one part of society, pocket the lion’s share of the loot, and pass out a few scraps to the lazy and simpleminded of society. Usually that’s only the lazy and simpleminded who can vote, or have some influence collectively on the politician’s career. Oh, yeah. When this wealth generating process is unfettered and unhampered it is a fair and just system which rewards those who work smart or, in many cases, who just work hard and systematically. Lazy and simpleminded people generally do not get to have as much of life’s goodies with one exception. Those people living off big government welfare programs. Some recipients of government welfare programs do get to live high and wide on money which was “lifted” from the paychecks, bank accounts and earnings of working citizens in the private sectors. Wealth plundered from citizens who actually went out and earned their money. Plunder and looting is where most “government wealth” comes from, in the first place. The pick of this privileged class of parasites living high and wide off the plunder are the overpaid, and generally shiftless bureaucrats who administer the gov’t hand-out programs. Fatcat politicians and their bureaucrats acquire this plunder and loot by the use force, coercion or the threat thereof. Politicians have no honest way to acquire real wealth, so they steal it, pointing guns at the people when it’s necessary to squeeze them for the loot. It is, of course, a form of violent parasitism. There is no such thing as a coin actually worth $1 trillion dollars by gov’t decree. Such a “fiat monetary gimmick” is a massive deception, pure theft and grotesque fraud on the world.