Philip Diehl, former director of the United States Mint, believes a trillion-dollar coin could be minted “quickly” in order to provide a solution to the looming debt ceiling problem.
Treasury Secretary Janet Yellen warned lawmakers last week that Congress has until October 18 to increase the country’s borrowing limit.
Yellen advised that failing to do so and allowing the U.S. to hit the debt ceiling “would be catastrophic,” adding that she “fully expect(s) [default] would cause a recession.”
Republicans have indicated they will not vote to raise the debt ceiling.
President Biden blasted Republicans for refusing to join with Democrats in raising the debt limit calling it, “hypocritical, dangerous and disgraceful.”
“They need to stop playing Russian roulette with the U.S. economy,” Biden said at the White House. “Republicans just have to let us do our job. Just get out of the way. If you don’t want to help save the country, get out of the way so you don’t destroy it.”
Diehl told Axios that with solutions possibly taking weeks to iron out, a quicker resolution may be to mint a trillion-dollar coin and “voila,” raise the debt ceiling.
Just like that. Voila.
Diehl explains that minting the trillion-dollar coin would only require the denomination being changed on a Platinum Eagle which is already produced by the U.S. mint.
Axios notes that even if Yellen is publicly professing opposition to such an idea, “there is no reason for her not to quietly instruct the Mint director to take those steps a day or two in advance.”
Just in case.
“Voila, we’d have bought ourselves the equivalent of a trillion-dollar increase in the debt limit, without any impact on inflation,” alleged Diehl.
White House Press Secretary Jen Psaki insists the Biden administration does not view minting a trillion-dollar coin as a “viable” option.
She also shot down a suggestion to invoke the 14th Amendment which allows the President to ignore the statutory debt limit and continue to borrow if lawmakers can’t agree to give the Treasury Department a higher ceiling.
“We obviously look at a range of options and none of those options were viable,” Psaki said. “Either because they wouldn’t be accepted by the Federal Reserve, by the guidance of our Treasury secretary, or just by legal restrictions.”
At least two Democrats would like to see the trillion-dollar coin as an option to fix the looming problem.
House Speaker Nancy Pelosi revealed that Rep. Jerry Nadler (D-NY) broached the idea in a recent meeting with Democrats.
Rep. Rashida Tlaib voiced her support for the idea with a simple hashtag, “#MintTheCoin.”
Tlaib (D-MI) similarly argued to print magical money in 2020. Rather than just one, however, she wanted President Trump to mint two trillion-dollar coins.
“Hey [President Trump], let’s provide relief from this crisis for people by giving pre-loaded debit cards to every person in America,” she tweeted. “No additional debt — we’ll just mint two [trillion dollar] coins.”
Two unicorns in one shot. Imagine that.
President Barack Obama reportedly considered minting such a coin during his tenure.
“There was this theory that I had the authority to issue through the mint this massive $1 trillion coin and on that basis we could try to pay off US Treasurys,” Obama said.
“It was some primitive … it was out of the Stone Age,” he added. “I pictured rolling in some coin.”
Democrats love sending America back to the stone age, why would this be any different?
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