This $1 Trillion Idea Just Got Nixed
The U.S. Treasury Department and Federal Reserve do not support the idea of minting platinum coins as a way to avoid the debt ceiling, according to Bloomberg. The coin, which would have a face value of $1 trillion, was proposed by top Democrats, including House Democratic leader Nancy Pelosi, as a way to side-step negotiations with Republicans over spending cuts.
A platinum coin is one of the many strategies Democrats are exhausting to avoid heading to the negotiation table with Republicans; there are also reports that top Democratic senators request that Obama use his presidential power to extend the debt ceiling, invoking the 14th amendment which states that the U.S. debt “shall not be questioned.”
However, Obama denied their request and now with the Treasury opposing the platinum coin idea, it suggests that House and Senate Democrats will have to hunker down and get to compromising with their Republican counterparts before the country reaches its debt ceiling, which is estimated to occur in mid-February.