American politicians are claiming that the United States is facing a significant debt crisis and that the debt ceiling puts the country at risk of default. Joe Biden talked about the limits of debt and told Republicans to “get out of the way” when making decisions. Meanwhile, a number of U.S. bureaucrats are floating the idea of creating a 1 trillion platinum coin to magically strengthen the treasury with cash.
The idea of a trillion-dollar currency is strongly considered by U.S. politicians, with the former U.S. mint director saying that the platinum currency could be created in just a few hours.
Making new Fiats out of thin air is a very popular trend nowadays, and it seems that many politicians around the world have not considered the history of economies that have been destroyed due to excessive financial expansion. In the United States, government officials are discussing the country’s debt ceiling and whether the United States will default on what it owes.
Speaking at a news conference at the White House, US President Joe Biden emphasized: “Extending the limit already comes down to paying off what we already owe … nothing new.” Biden says Republicans are stoning the need to raise the debt limit, and he’s just telling the party to “get out of the way so you don’t destroy.” [the country]. ”
Meanwhile, several government officials and the mainstream media are discussing the idea of creating a $ 1 trillion platinum coin to save the economy from disaster. This is not a joke and it is being strongly considered by US politicians who are fans of heterodox macroeconomic concepts like modern monetary theory (MMT).
Moreover, thanks to an interesting law, the executive branch – without congressional approval – can produce any currency until it is made from platinum. Additionally, Axios reporter Felix Salmon explained that while Janet Yellen did not tell the public, she could “quietly instruct the Mint director to take these steps a day or two in advance.” Salmon added:
At that point, a coin could be struck in a matter of minutes at West Point Mint. Even if it needs to be physically deposited in the New York Fed, it’s just a short helicopter ride away.
Yellen calls Coin Idea a ‘gimmick’, MMT spokesman Rohan Gray said, ‘Debt ceiling itself is the beau the bit by the bare, bezelly designed accounting gimmick’.
The unique law capable of creating such a coin was enacted 20 years ago and was intended to assist in the production of commemorative coins. The rules do not mention the financial debt crisis.
The law specifically states that U.S. Treasury Secretary Janet Yellen “can mint and issue platinum bullion coins and proof platinum coins according to the secretary’s discretion, design, variety, quantity, price and inscription. Write from time to time.”
Although Yellen rejected the idea with a group of Democrats on Tuesday, Philip Diehl, a former director of the U.S. Mint, said the decision could still be made. The trillion-dollar platinum currency could be created “within hours of the Treasury Secretary’s decision,” Diehl said.
Yellen described the idea as a “hoax” and told CNBC reporters that “what Congress needs to show is that the world can pay America its dues.” The CNBC report cites MMT proponent Rohan Gray, who said “sure it” was a hoax when referring to Yellen’s remarks.
“The coin represents an accounting gimmick rather than a source of its strengths,” Gray wrote in the Kentucky Law Journal and explained in a research paper shared with CNBC. “The idea of tackling an accounting problem with an accounting solution” is perfectly consistent … the debt ceiling itself can be seen as a big, poorly designed accounting gimmick. “
What do you think of the trillion dollar platinum coin idea? Let us know what you think about this in the comments section below.
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