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Democrats are considering minting a trillion-dollar coin

5 pointsby sayonaramanover 3 years ago

1 comment

aazaaover 3 years ago
&gt; One strategy includes minting a $1 trillion coin, a move she [Pelosi] said Rep. Jerry Nadler of New York [Ranking Member of the House Judiciary Committee] has raised. Back in 2013, during another debt-ceiling fight, the Treasury and Federal Reserve said they wouldn’t pursue just such a plan as a way of avoiding the debt limit. And the White House earlier this month rejected the idea anew, saying there is only “one viable option” on the debt limit — increasing or suspending it.<p>I suspect this is mere posturing because it&#x27;s not up to Congress to mint the $1 trillion coin. It&#x27;s a decision only the Treasury Secretary can make.<p>&gt; The concept of striking a trillion-dollar coin that would generate one trillion dollars in seigniorage, which would be off-budget, or numismatic profit, which would be on-budget, and be transferred to the Treasury, is based on the authority granted by Section 31 U.S.C. § 5112 of the United States Code for the Treasury Department to &quot;mint and issue platinum bullion coins&quot; in any denominations the Secretary of the Treasury may choose. Thus, if the Treasury were to mint one-trillion dollar coins, it could deposit such coins at the Federal Reserve&#x27;s Treasury account instead of issuing new debt.[5][6][7][8]<p><a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Trillion-dollar_coin" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Trillion-dollar_coin</a><p>AFAIK, Yellen has never made a statement on the trillion dollar coin.<p>However, the fact that this is playing out against a backdrop of unprecedented deficit spending, government transfers, and Fed interventions means that this time is different.