Obama To Pay Off US Debt With Trillion-Dollar Platinum Coins?

Obama To Pay Off US Debt With Trillion-Dollar Platinum Coins?
World
Like Us On Facebook
Like Us On Facebook

While we have avoided the fiscal cliff for now, the next major financial debate in Washington will be about how to go about paying off the outstanding US Debt.

Some say, however, the problem could be solved by a very expensive coin.

When the United States again reaches the maximum borrowing amount from foreign nations (also known as the debt ceiling) in February, the House of Representatives and Senate will decide whether to raise it again or to find another solution for the US Debt crisis.

One idea that has been thrown around recently may seem farfetched, but is entirely feasible: to mint a few trillion dollar platinum coins.

While the US can’t just print unlimited money or mint enough gold, silver and copper coins to cover the debt, there are no restrictions on minting platinum coins.

“There are limits on how much paper money the U.S. can circulate and rules that govern coinage on gold, silver and copper,” said analyst Chris Krueger from Guggenheim Securities’ Washington Research Group. “BUT, the Treasury has broad discretion on coins made from platinum.”

“Although the Treasury can’t just create money out of thin air to pay its bills, there is a technicality in the law that says the Treasury has special discretion to create platinum coins of any denomination, and the thinking is that [Secretary of the Treasury] Tim Geithner could make the coin and walk it over to the Federal Reserve and deposit it in the Treasury’s bank account,” adds Joe Weisenthal of Business Insider.

While the idea may sound crazy, it has been one of the most talked about options this year as far as the US Debt crisis is concerned, and members of Congress have already endorsed it.

“It sounds silly but it’s absolutely legal,” Rep. Jerrold Nadler (D-New York) tells New York Capital this week. “There is specific statutory authority that says that the Federal Reserve can mint any non-gold or -silver coin in any denomination, so all you do is you tell the Federal Reserve to make a platinum coin for one trillion dollars, and then you deposit it in the Treasury account, and you pay your bills.”

So is it possible that the solution was directly under our nose this whole time? We’ll see whether or not this will be gone through with by Congress, but Krueger did say to the American Enterprise Institute that this option has a “VERY low probability” of happening.

James Gilbert | Elite.

Share Tweet
React
Like Us On Facebook
Like Us On Facebook

James Gilbert

World news writer James Gilbert is one of the oldest on the Elite Daily writing staff, as he is a borderline Gen Y member. Being considered the dinosaur of the group, he is constantly asked about historical time periods he did not actually live through. All and all, James Gilbert brings that dynamic and balance to the team, rounding out Elite Daily’s Voltron (or that thing the Power Rangers formed for you young whippersnappers.)

More In World

World Sean Levinson

Teen Arrested After ISIS Allegedly Offers Him $25K To Bomb Vienna

Austrian police have arrested a 14-year-old boy who was reportedly offered $25,000 from the Islamic State to set off a series of explosions in Vienna. Two other Austrian teenagers suspected of having similar offers from the militant group are still at large, though police do not believe the three were working together. The boy, known only as […]

World Gillian Fuller

Four Killed In Flight Simulator When Airplane Crashes Into Their Building

Four people were killed Thursday morning when a small airplane crashed into a flight training center at Kansas’ Mid-Continent Airport. The twin-engine Beechcraft King Air B200 lost power immediately after takeoff and crashed into the airport’s FlightSafety center just before 10 am. Three people inside the building were killed, as well as the pilot, who was […]

World Emily Arata

Finally! The Scientific Reason Why Scratching Makes You Itch More

The blissful relief of scratching an insect bite is almost worth the brief pain and doubly intense itchiness that follows. A research team from Washington University School of Medicine in St. Louis discovered that when you scratch something itchy, the brain releases mood-balancing serotonin to quell pain nerve signals coming from that spot. As the neurotransmitter travels […]

World Sean Levinson

Man Who Beheaded His Mother And Jumped In Front Of Train Was Off Meds

The Farmingdale, Long Island, man who reportedly beheaded his mother before jumping in front of a train did so because he wasn’t taking his psychological medication. Derek Ward, 35, killed himself and his mother, 66-year-old SUNY Farmingdale Professor Patricia Ward, on Tuesday, just two days before an appointment with a psychiatrist, the killer’s uncle told the […]

World Emily Arata

Father And Son Die Hours Apart, Side By Side, After Both Battle Cancer

Eric Thurlow and his son, Dean, shared a love of fishing and family. When both father, 71, and son, 40, were diagnosed with cancer, the “inseparable” pair struggled with illness together. Last week, Dean succumbed to brain cancer. Less than a day later, his father, Eric, passed away from pancreatic cancer in the room next door. […]

Also On Elite

Goods

The All-In-One Beer And Weed Bong Will Be Sure To F*ck You Up

We’ve seen it all. We’ve seen THC-infused chocolates, THC-infused pizza and even THC-infused grilled cheese sandwiches. What we haven’t seen, until now, is this insane all-in-one “beer shotgun, gravity pipe and water pipe” device brilliantly named The Knockout. It’s everything you could wish for in a drinking and smoking device. If you’re one of those fearless […]

Entertainment

Sext On, My Friends: It’s Your Body, Make Your Own Decisions

After nude photos of dozens of celebrities leaked online and continue to surface, many people are left to wonder, ‘To sext or not to sext?’ Jennifer Lawrence, one of the targeted celebrities, finally broke her silence about the leaked photos in a Vanity Fair interview for the publication’s November issue. She said, It’s my body, and it […]

World

Watch Out Beyoncé, This Baby Beauty Queen Does A Better ‘Single Ladies’

Bobbi Boyden’s mother believes the 19-month-old is the next Queen Bey. Bobbi’s been performing in child beauty pageants since her first few months out of the womb. To date, her mother, Stephanie, has spent over $8,000 on the wardrobes of Bobbi and her two sisters. Stephanie even choreographed the Colchester, England girl’s crowd-winning routine: a “Single […]

Women

Teen Clothing Brand May Affect Body Images By Only Offering Size Small

If you’re skinny, white and you know it, clap your hands. You are the target consumer for Italian teen clothing label Brandy Melville, which only sells one size. As the clothing brand becomes a status symbol for teenage girls across the country, body image activists are scared the brand will encourage girls to try any […]

World

These American Veterans Joined Forces With The Kurds To Fight ISIS

The Islamic State of Iraq and the Levant (ISIS) controls a significant amount of territory across Iraq and Syria. ISIS is well-trained and equipped, and is the wealthiest terrorist organization in history. It adheres to a distorted and fundamentalist interpretation of Islam, and has employed brutal tactics throughout its rapid advance. Following the release of […]