{"id":20575,"date":"2023-05-04T21:09:20","date_gmt":"2023-05-04T21:09:20","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/biden-aides-explore-minting-1-trillion-platinum-coin-as-solution-to-impending-debt-default-economics-bitcoin-news\/"},"modified":"2023-05-04T21:09:20","modified_gmt":"2023-05-04T21:09:20","slug":"biden-aides-explore-minting-1-trillion-platinum-coin-as-solution-to-impending-debt-default-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/biden-aides-explore-minting-1-trillion-platinum-coin-as-solution-to-impending-debt-default-economics-bitcoin-news\/","title":{"rendered":"Biden Aides Explore Minting $1 Trillion Platinum Coin as Solution to Impending Debt Default \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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As the United States stares down the barrel of a potential debt default come June, a curious and intriguing solution has emerged: crafting a single $1 trillion platinum coin. This unusual tactic exploits a legal loophole that allows the Treasury Department to mint platinum coins of any value. By delivering such a coin to the U.S. central bank, the Treasury would create enough funds to settle its debts. Though this proposal might sound bizarre, it\u2019s gained traction as a potential escape route from the impending debt catastrophe.<\/strong><\/p>\n

The Trillion-Dollar Platinum Coin Idea to Stave off U.S. Debt Default Returns<\/h2>\n

Devotees of Modern Monetary Theory (MMT) will be thrilled to learn that the trillion-dollar coin concept is making headlines once more as America edges ever closer to defaulting on its debt. Just three days ago, Treasury Secretary Janet Yellen cautioned<\/a> that a U.S. debt default could likely result in an \u201ceconomic and financial catastrophe.\u201d As tensions rise over the debt ceiling, talk of the Treasury forging a trillion-dollar platinum coin has experienced a resurgence.<\/p>\n

Insider reporters Juliana Kaplan and Ayelet Sheffey quote<\/a> Rohan Grey, a professor at Willamette University College of Law and MMT advocate, as proclaiming the idea\u2019s feasibility. Grey contends that \u201cat this point, if any of the other solutions, the so-called more serious solutions would work, then they would\u2019ve been used by now,\u201d but they continue to disappoint. \u201cThe coin\u2019s the only one that\u2019s strong enough,\u201d he asserts.<\/p>\n

Back in 2020, during the initial stages of the Covid-19 pandemic, Grey collaborated with Michigan Democrat Rashida Tlaib on a proposal<\/a> allowing for the U.S. Treasury to mint not one but two trillion-dollar coins for basic income purposes. Acclaimed journalist Joe Weisenthal hailed<\/a> it as just \u201cthe kind of break-the-glass thinking we need to address the scale of the crisis.\u201d<\/p>\n

Even former President Barack Obama touched on the idea<\/a> during a 2017 interview and suggested officials mull over this concept if financial turmoil engulfs the nation. In October 2021, U.S. lawmakers also suggested<\/a> minting a $1 trillion platinum coin in order to magically bolster the treasury with cash for the same reasons.<\/p>\n

Despite the buzz, Insider\u2019s Kaplan considers the trillion-dollar coin plan \u201cunlikely to fly,\u201d noting that \u201cBiden aides are looking at other legal workarounds.\u201d The concept has elicited both ridicule and bewilderment on social media, with some commentators poking fun at the claim that this fabled trillion-dollar coin would be no larger than a standard one.<\/p>\n

Shapeshift founder Erik Voorhees quipped<\/a>: \u201cThank god it would be no bigger than a regular coin.\u201d Meanwhile, Wall Street Silver\u2019s Twitter account chimed in<\/a>: \u201cThey are starting to talk about the magical $1 trillion platinum coin again. This is really an \u2018end of empire\u2019 type of economic strategy here. Why can\u2019t they rationally discuss reasonable budget cuts to get things under control?\u201d<\/p>\n

Oddly enough, Nobel laureate Paul Krugman<\/a> maintains that adopting the trillion-dollar coin approach would not constitute an implementation of MMT. \u201cI keep seeing people saying that this would be MMT, that we\u2019d just be printing money to cover the deficit,\u201d Krugman said<\/a>. \u201cBut it wouldn\u2019t be that at all. The Fed would surely sterilize any impact on the monetary base by selling off some of its huge portfolio of U.S. debt.\u201d<\/p>\n

The Keynesian economist added<\/a> that \u201cminting the coin is just borrowing through the back door. It\u2019s not financing the deficit through seigniorage, it\u2019s not a way to avoid interest payments. It\u2019s just a bookkeeping trick to avoid extortion.\u201d<\/p>\n

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bookkeeping trick<\/a>, budget cuts<\/a>, debt default<\/a>, Economic Crisis<\/a>, financial catastrophe<\/a>, legal loophole<\/a>, Modern Monetary Theory<\/a>, Platinum Coin<\/a>, treasury department<\/a>, Treasury platinum coin<\/a>, trillion-dollar coin<\/a>, U.S. Central Bank<\/a>, United States<\/a><\/div>\n<\/div>\n

What do you think about the trillion-dollar platinum coin proposal as a solution to the United States\u2019 impending debt default? Do you believe it\u2019s a viable option or just a bookkeeping trick? Share your thoughts in the comments below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 7,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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