A cure for default: in the United States, a $ 1 trillion coin can be minted in a few hours - ForumDaily
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A cure for default: in the United States, a $ 1 trillion coin can be minted in a few hours

According to the former director of the US Mint, a trillion dollar coin could be minted within hours of an emergency decision. Business Insider.

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According to the former director, the US Mint could issue a $ 1 trillion coin within hours of the emergency decision.

“This can be done quickly on an existing Platinum Eagle plaster mold,” he said.

While possible, the Treasury Secretary dismissed the idea in an interview with CNBC.

The $ 1 trillion coin could be minted within hours of an emergency decision by Treasury Secretary Janet Yellen to prevent America from defaulting on debt.

Philip Deal, director of the United States Mint from 1994 to 2000, told Axios the agency had no shortage of platinum coin stocks. This metal is necessary for the manufacture of such a coin, according to the law on which the whole idea is based.

“This can be done quickly on an existing plaster mold of the Platinum Eagle,” Deal said, adding that only the denomination of the coin would need to be changed.

The $ 1 Trillion coin can then be created within minutes at West Point, NY and delivered to the New York Fed for physical deposit by helicopter.

The creation of a $ 1 trillion coin could be a last-minute last minute if Congress fails to raise the debt bar before the Treasury runs out of money on Oct. 18.

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But since Treasury Secretary Janet Yellen urges Congress to raise the debt ceiling to avoid economic disaster, she also rebukes the $ 1 trillion coin idea.

In an interview with CNBC on Tuesday, Yellen said of the coin: “I am against it and do not think we should take this idea seriously. This is indeed a ruse, and Congress needs to show that the world can count on America to pay its debts. ”

A vote is slated for Wednesday to suspend the debt limit until the end of next year, but opposition from Senate Republicans does not give the measure a chance of adoption.

Chances are, materializing a $ 1 trillion coin will have many flaws. It could undermine confidence in America's monetary system and drag the Federal Reserve into a high-stakes political battle, Jason Furman, a former Obama administration economist, told Insider last month.

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But this monetary “trick” will actually give the Treasury Department the money it needs to pay off its debts and avoid the almost guaranteed economic downturn in a scenario where Congress fails to act and raises the debt limit in time.

“Voila, we would have bought ourselves the equivalent of a trillion dollar increase in the debt limit without any impact on inflation,” Deal said.

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Miscellanea In the U.S. inflation coin trillion dollar coin US Mint US default Treasury Secretary Janet Yellen coin denomination debt limit increase
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