COIN TOSSED

Treasury Won't Mint a Platinum Coin to Get Around Debt-Ceiling

A strategy promoted by some pundits and economists gets shut down

Jan 12, 2013 by Lisa Fine

Staff Writer t

Image: AP

Looks like President Barack Obama won't be ordering up a giant $1 trillion dollar coin to help pay the country's bills if Congress doesn't agree to raise the debt-ceiling.

The U.S. Treasury Department has just declared it will not produce platinum coins and the Federal Reserve would not accept them for deposit as a way to avoid a debt ceiling showdown, Reuters reports.

"Neither the Treasury Department nor the Federal Reserve believes that the law can or should be used to facilitate the production of platinum coins for the purpose of avoiding an increase in the debt limit," said Treasury spokesman Anthony Coley in a statement released Saturday.

An obscure commemorative coin law gives the Treasury Secretary the power to mint and issue platinum coins in any denomination. Minting a platinum coin to get around the debt-ceiling was an idea that had been gaining traction with backers including Nobel Prize-winning economist Paul Krugman and U.S. Rep. Jerrold Nadler, D-N.Y. Republican leaders have said an increase in the debt ceiling must be accompanied by big spending cuts to offset costs.

The nation reached the $16.4 trillion debt-ceiling on Dec. 31. The treasury has been taking "extraordinary steps" to extend the time before defaulting, which may happen as soon as mid-February if Congress doesn't act.

Via Reuters

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?	Was President Obama's administration wise to reject the idea of minting a platinum coin to avoid the debt-ceiling?

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Yes, it was a bad idea

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No, it gave up leverage

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Jan '13

Mogal

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Like this was ever SERIOUSLY entertained?
Please.
- B3 • Vote Up r19 Replies
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Jan '13

thejimbo

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did a 5 year old kid suggest this "solution"? i never knew 5 year olds could be "economists" ;)
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Jan '13

Mogal

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@jamesmitchell This is the backstory, interesting;
http://www.wired.com/business/2013/01/trillio...
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o
Jan '13

thejimbo

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@Mogal Beowulf...lol
- B2 • Vote Up
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Jan '13

Ashstop

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@jamesmitchell
I know they don't act like it but I think most his administration is older than five, at least physically
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Jan '13

Mogal

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@Ashstop Hmmmm....And you reply was so much more mature?
- B2 • Vote Up
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Jan '13

ConserveUSA

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As I will I say always, we would not have this problem if certain things have not taken place.
- B5 • Vote Up r7 Replies
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Jan '13

Neo_NtheMatrix

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Yes, but obama was elected and then reelected anyway. Now we all get to pay for his enormous spending.

http://www.youtube.com/watch...
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Jan '13

thejimbo

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@Neo_NtheMatrix Whatever happened to this Obama?

"The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the U.S. Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies.… Increasing America’s debt weakens us domestically and internationally. Leadership means that “the buck stops here.”

- Senator Barack Obama in 2006 when he voted AGAINST raising the debt ceiling.
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Jan '13

Quantummist

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@jamesmitchell ..."Whatever happened to this Obama? "... He was elected President by Idiots that Believed him.... I do not fear this President... I Fear the Population that would elect this President.... Elections have consequences and we have yet to see what this last election will wrought on those that elected him... And those that did not...
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Jan '13

thejimbo

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@Quantummist "Everybody, soon or late, sits down to a banquet of consequences."
- Robert Louis Stevenson
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Jan '13

Quantummist

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@jamesmitchell ... But he left out the part about the meat at the banquet going bad and making all the party goers throw up in the souffle.....
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Jan '13

Raptor

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Congress is incapable of acting on any thing by mid february.
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Jan '13

jessejaymes

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Well there goes the opportunity for Congress to remove the last single shred of doubt as to their being do nothing, owned by the rich swine.
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Jan '13

libertyordie

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we are a bankrupt nation hold on people the crash has just begone
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Jan '13

thejimbo

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this is what happens when you let elite bankers and economists run a country.. just one ponzi scheme after another...
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Jan '13

marine1

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I think you are right.
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Jan '13

CATTLEPROD

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@jamesmitchell This is what happens when you pay welfare queens to pump out baby after baby after baby by daddy after daddy after daddy.
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Jan '13

martydotcom

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would it be too much to expect that congress begin like adults who possess a modicum of intelligence
- B2 • Vote Up r3 Replies
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Jan '13

Neo_NtheMatrix

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The voters don't act like they have a modicum of intelligence, politicians are just taking advantage of that fact. If the voters had any sense then the elections would have turned out radically different.
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Jan '13

marine1

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YES
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Jan '13

marine1

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@Neo_NtheMatrix You are right. if voters had sense we would not have sent one incumbent back to DC.
- B2 • Vote Up
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Jan '13

Neo_NtheMatrix

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The word wise should never appear in a sentence with obama. obama did one thing right here, he told Rep. Jerrold Nadler where to go. obama has stolen enough money, there is no need for him to steal any more. No $1T coins, not on the American taxpayer's watch.
- B2 • Vote Up r1 Reply
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Jan '13

PoliticalSpice

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Obama should give a chance to raise the debt ceiling. If they play games he should raise it himself under the 14th amendment. Let them sue, in the mean time the credit rating will be solid...
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Jan '13

Sharpshooter

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@PolitixLisa The story says the mint and treasury department have decided to not mint the coins.... why are you crediting Obama in your question?
- B2 • Vote Up r3 Replies
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Jan '13

Neo_NtheMatrix

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The Messiah always gets the credit.
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Jan '13

thejimbo

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@Neo_NtheMatrix Hallelujah! Another miracle! ;)
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Jan '13

stepped_in_it

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HMMM, my first thought! "Was President Obama's administration wise to reject the idea of minting a platinum coin to avoid the debt-ceiling?" I thought the idea of a trillion dollar CAME FROM the Obama administration to avoid the debt ceiling? Am I wrong or is the king blaming his jesters again?
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Post @stepped_in_it
Jan '13

DARSB

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Too bad. The argument over whose profile to have on a trillion dollar coin would have been comedy gold.
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Jan '13

stepped_in_it

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Don't laugh too hard. In the remake of "Total Recall", the money in the movie had Obama's face on it. Watch closely to see it....made me laugh!
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Jan '13

DARSB

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@stepped_in_it Yeah, I noticed that, too.
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Jan '13

DyingBreed

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The inflation caused by those coins would be devastating.
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Jan '13

MadAmerican

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Obama didn't reject this-he was rejected by the treasury! If he had his way he would have his face on thousands of them.
- B3 • Vote Up r3 Replies
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o
Jan '13

Mogal

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Whoops, I sure as hell didnt mean to vote this piece of tripe post up.
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Jan '13

PoliticalSpice

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You do understand that Treasury is an executive branch agency. Do you know who happens to run the executive branch?
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Jan '13

DARSB

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I must have missed the public announcement from the President in favor of this idea.
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Jan '13

Thunderchicken

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http://www.businessinsider.com/the-history-of...
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u
Jan '13

Romney_Rube

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Imbeciles have overrun our government and nation.
- B Vote Up r8 Replies
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Jan '13

PoliticalSpice

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Don't worry, republicans are losing ground and may very well lose the house in 2014...
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Jan '13

zeke

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@PoliticalSpice Lets see one party rule would solve everthing, just as it has all the world during the past century! Please pull your head out of the sand!
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Jan '13

Romney_Rube

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@PoliticalSpice Your famous last words and incredibly short memory. The same was said of the Democrats in 2005.
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Jan '13

PoliticalSpice

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@Romney_Rube touche'
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Jan '13

PoliticalSpice

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@zeke I'm actually not a dem, just replying to his comment, but always lose gracefully, he bested me.
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Jan '13

twinertia

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.....and that concludes this week's episode of:**DIVERSIONARY DRAMA**!!!
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Jan '13

Dan_Tien

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How much do they need to pay off the National Debt? I'll just write them a check.
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u
Jan '13

Polusalo

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Pretty sure I have some loose change around here somewhere.
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o
Jan '13

bambi33

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Read "The Creature From Jekyll Island" by Edward Griffin - in order to fully understand how we got into this mess, as well as who is responsible, and why they do it.
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Jan '13

jessejaymes

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While you right wingers are busy ranting about Obama I would like to note that California (you remember California right? That state you said was bankrupt and run into the ground by liberals?) California just closed the books on their second year in a row with a budget surplus and the deficit is rapidly being close (at a rate faster than any state in America with a deficit) and all this is being done under a Democrat Governor with a super majority Democrat State
Congress. Now this is where you say "yeah but it's the land of fruits and nuts". and chortle like you actually know something.
- B2 • Vote Up r41 Replies
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Jan '13

ConserveUSA

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He must be a good Democrat not a Leftist.
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Jan '13

PNWest

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Again California is leading the way. Once the democrats had a super majority and were able to overcome republican obstructionism good things began to happen. No surprises there. If we allowed the red "taker" states to secede like many of them want to we could fix the entire country.
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Jan '13

jessejaymes

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@PNWest LOL. Well sorta but not exactly. Jerry Brown didn't have a super majority Dem congress the past two years while this happened. 1.) the economy is turning. California was the first into the recession and they are the first big state coming (this bodes well for the nation of course since as California goes, the nation goes.) 2.) The super majority has already said LET'S SPEND!!!! Brown and the state voted yes on Education and the high speed rail (about time, Brown has only been championing this for 40 years) but no to everything else. Jerry Brown is turning into quite a good money manager this time around.
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Jan '13

PoliticalSpice

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@ConserveUSA Do you have any idea of jerry browns history? he refused to extradite russell means to south dakota when he was govenor. He opposed nuclear power. He appoint some of the most liberal judges in the states history. He just closed the budget gap by raising taxes. He created the solar law that required utilities to buy solar from consumers. He hosted forest preservation meetings at his home in oakland For the group that shut down logging in the pacific northwest. I could go on. Unfortunatelly he wasn't a leftist, be he was one of the few principled liberals in elected office. He ran in the presidential primary to the left of bill clinton.
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Post @PoliticalSpice
Jan '13

jessejaymes

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@PoliticalSpice Jerry "Governor Moonbeam" was quite the ultra liberal the first time he was Governor. He's not quite so loose with the money this time around.
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Jan '13

ConserveUSA

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I wonder if Obama would reject a Platinum Coin if his picture on it. Hardcore Left Wing Liberals look up to their "Dear Leader".
- B2 • Vote Up r1 Reply
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Jan '13

PoliticalSpice

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The hardcore left does not like liberals. Leftist oppose liberalism because it is part of capitalist democracy. hardcore leftist are socialistically inclined. Socialism opposes capitalism, hence leftist, while some might vote obama, hardly look upon him as their leader.

Indeed, many liberal do not feel obama is a liberal, but more a moderate democrat. If I had to pick a u.s. president to go on a coin it or bill it would be FDR...I would also take jackson off the twenty, and grant off the fifty, and put martin luther kin jr on one and theodore roosevelt on the other...
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Jan '13

BelinKS

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Just minting a coin and saying it is worth $1trillion does not mean the $1 trillion actually exists to back it up. That's the same as counterfeit money!
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Jan '13

jmann88

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He needs to be on the 4 dollar bill that's next to Clinton on the 3$ bill. What's funny is the 3$ bill is worthless and so would a 4$ bill
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Was President Obama's administration wise to reject the idea of minting a platinum coin to avoid the debt-ceiling?

Was President Obama's administration wise to reject the idea of minting a platinum coin to avoid the debt-ceiling?