Obama to sanction the minting of a trillion dollar coin?

Graham_Devon

This made me smile. If the coin is created, which does appear to be a serious option at the moment, it will allow the president to avoid the US debt ceiling problems.

Technically, it's legal, and even if illegal, there will be no route to challenge such a coin.

The platinium coin can be made to hold any value, though the talk on the table at the moment is to make it worth $1tn.

It's being argued that minting this coin is a better option than raising the debt ceiling, as it will allow the government to avoid all talks and compromises over raising the debt ceiling. Obama has stated point blank that he will not negotiate over raising the debt ceiling...this is an easy way to stick to his promise.

If it's stolen? Mint another...

If it's not enough? Mint another...

Theres a US limit QE. Theres a limit on paper, silver and gold. However, there is no limit on platinum... "ahh haaaaa"

Paul Krugman is one of those arguing for the coin to be minted. The republicans are trying to implement a bill to ban the proposal.

Most others are worrying, quite rightly, over how desperate this will make the worlds largest, and most influencial econmy look.... Afterall, it's widely accepted as nothing more than a gimmick....however, it's a gimmick that will solve the current governments problems.

I think it's just brilliant!

http://www.nydailynews.com/news/politics/obama-mint-trillion-dollar-coin-deal-debt-ceiling-article-1.1235224

http://www.bloomberg.com/news/2013-01-07/why-platinum-coin-opponents-are-all-wrong.html?wpisrc=nl_wonk

chewmylegoff

Is it really being considered as a "serious option" or is this just the ramblings of a couple of lunatics. Seems like the latter to me.

Graham_Devon

chewmylegoff wrote: »

Is it really being considered as a "serious option" or is this just the ramblings of a couple of lunatics. Seems like the latter to me.

Was on newsnight tonight. Apparently, yes, it's a serious option, has been mentioned to Obama, and not ruled out. Though as yet, theres nothing official from Obama or the administration.

Can't really see it happening myself, but would be hysterical if it went ahead to get around negotiations!

The proposal for the Treasury Department to mint a platinum coin worth $1 trillion and deposit it at the Federal Reserve to give the U.S. enough money to pay its debts has been advanced by Representative Jerrold Nadler, a New York Democrat, and Nobel laureate Paul Krugman. Representative Greg Walden, an Oregon Republican, said yesterday he would introduce legislation to block any such move.
The ideas underscore growing unease in Washington as the U.S. reaches the debt limit and Obama and the Republicans move closer to a confrontation over increasing it. Republicans are demanding spending cuts in exchange for raising the limit, while Obama says he won’t negotiate on the issue. Treasury Secretary Timothy F. Geithner took extraordinary measures on Dec. 31, when the U.S. was $25 million below the ceiling, to avoid breaking through it.

Masomnia

I don't think it'll happen, it's just a very expensive bargaining chip.

Generali

Masomnia wrote: »

I don't think it'll happen, it's just a very expensive bargaining chip.

I agree. The best negotiating stance is often to convince the other person that you don't care whether or not you come to an agreement.

Fella

Gordon Brown wanted to to this in the UK. The proposals were dropped after it was revealed the coin would have tails on both sides.