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.