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New Trillion Dollar Coin

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Pillar of the Community

United States
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 Posted 10/05/2021  4:56 pm Show Profile   Bookmark this topic Add Bret to your friends list Get a Link to this Message
Below is an article that discusses the possibility of minting a new trillion dollar coin in order to stave off the debt ceiling increase deadline. While this isn't a commemorative, I'm sure it would qualify as a non-circulating coin.

https://www.axios.com/trillion-doll...1d181de.html

The most interesting part of the article to me is the quote by former Mint Director Diehl where he says "Voila, we'd have bought ourselves the equivalent of a trillion-dollar increase in the debt limit, without any impact on inflation," If there's not risk to inflation, why not just mint 29 of the coins and wipe out the entire national debt in one fell swoop?


Edited by Bret
10/05/2021 5:02 pm
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106647 Posts
 Posted 10/05/2021  5:11 pm  Show Profile   Bookmark this reply Add jbuck to your friends list Get a Link to this Reply
I saw this in my news feed today. I hesitated to bring it up because of the weird grey area bridging the political and numismatic aspects. That being said, to all, please avoid the specific politics when discussing this.
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 Posted 10/05/2021  5:37 pm  Show Profile   Bookmark this reply Add llewellin to your friends list Get a Link to this Reply
Incredible to think they would transport one trillion dollars by helicopter to a vault. However I can't imagine it being any sort of target for theft because of the perpetual impossibility of redemption. Still don't understand the claim this would have no effect on inflation..
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 Posted 10/05/2021  5:48 pm  Show Profile   Check spruett001's eBay Listings Bookmark this reply Add spruett001 to your friends list Get a Link to this Reply
My understanding is that increasing the money supply causes inflation. How would this be any different?
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 Posted 10/05/2021  5:51 pm  Show Profile   Bookmark this reply Add Corbe to your friends list Get a Link to this Reply
Is this for real? I am not familiar with "Axios" website. Platinum, eh? Even the US Gov't can't afford palladium!
Edited by Corbe
10/05/2021 5:53 pm
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 Posted 10/05/2021  5:58 pm  Show Profile   Bookmark this reply Add NumisEd to your friends list Get a Link to this Reply
It's just a gimmick. Might as well take a piece of plastic and print "trillion" on it.
Or better yet, seize the FED and simply print the money you want. Why the complicated hooplah.
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 Posted 10/05/2021  6:04 pm  Show Profile   Bookmark this reply Add ijn1944 to your friends list Get a Link to this Reply
A nice road rash candidate.
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 Posted 10/05/2021  6:18 pm  Show Profile   Bookmark this reply Add commems to your friends list Get a Link to this Reply
A re-hash of an idea floated in 2010-2011 when the US Congress was also wrestling with debt ceiling issues.

What goes around, comes around...


Collecting history one coin or medal at a time! (c) commems. All rights reserved.
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 Posted 10/05/2021  7:16 pm  Show Profile   Bookmark this reply Add hokiefan_82 to your friends list Get a Link to this Reply
As commems mentioned, this same idea has come up before in a similar situation. Lots of question on the legality or constitutionality of trying such a thing, even if it could possibly be less damaging to the economy than defaulting. I would fully expect the debt ceiling will ultimately be raised which would make this all moot, but only time will tell.
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 Posted 10/05/2021  9:45 pm  Show Profile   Bookmark this reply Add Sap to your friends list Get a Link to this Reply
And all the talk about "coins" is because the whole point is seeking a way to create extra money without needing to go through Congress.

They can't print a trillion dollar Federal Reserve Note. Section 16.8 of the Federal Reserve Act restricts the possible denominations the Fed is allowed to issue. And $10000 is the highest denomination currently allowed under the Act. They'd need to print 100 million $10000 notes, which might take a while - the BEP can only print 10 million notes per day.

They can't print a trillion dollar United States Note either, as the total face value of such notes is likewise capped by Congress at $346,681,016 - way under the trillion dollar target, even if all other United States Notes suddenly ceased to exist.

Nor can they set up any other authority to issue a trillion dollar banknote without Congressional approval.

Congress normally needs to approve new coinage designs too. But there is one exception: platinum coins, which have been given specific exemption from requirement for Congressional approval of denomination and design. 31 US Code 5112, paragraph (k).

So, with the Secretary of the Treasury's approval, the Mint can indeed lawfully strike trillion dollar coins, on demand, with minimal delay and zero requirement for Congressional approval. The only qualifier is that any such coins must be made of platinum.
Don't say "infinitely" when you mean "very"; otherwise, you'll have no word left when you want to talk about something really infinite. - C. S. Lewis
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 Posted 10/05/2021  10:20 pm  Show Profile   Bookmark this reply Add Bret to your friends list Get a Link to this Reply
Sap, thanks for the additional information. That was very educational.

The one thing that's missing with this idea is who would supply the money to buy the coin. The mint doesn't just manufacture coins and throw them out in the economy. As I understand the way it typically works, a bank pays money to the mint and in return receives that same amount back in coinage. So the bank will end up with just as much as they sent but just in a different form of money. Meanwhile, the mint's profit is the amount of money that they received from the bank minus the cost to produce the coinage. In the case of the trillion dollar coin, who would pay the trillion dollars to the mint?
Edited by Bret
10/05/2021 10:22 pm
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 Posted 10/05/2021  10:57 pm  Show Profile   Bookmark this reply Add Corbe to your friends list Get a Link to this Reply

Quote:
In the case of the trillion dollar coin, who would pay the trillion dollars to the mint?

The platinum $1T coin itself is only $1545, but the overnight shipping will be $999,999,998,455.
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 Posted 10/05/2021  11:21 pm  Show Profile   Bookmark this reply Add pkluck to your friends list Get a Link to this Reply
This is just stupid on so many levels.
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 Posted 10/06/2021  12:06 am  Show Profile   Bookmark this reply Add Parklane64 to your friends list Get a Link to this Reply
...and brilliant in a couple.
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 Posted 10/06/2021  02:26 am  Show Profile   Bookmark this reply Add sel_69l to your friends list Get a Link to this Reply
I could write
'One Trillion Dollars' on a sheet of toilet paper.
I am sure that is someone out there would be able to use it.

Probably already happened with Zimbabwean One Trillion Dollar Notes.

Perhaps a more rational suggestion:
For silver stackers, a One Trillion Dollar coin could be produced as a silver round.
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 Posted 10/06/2021  09:47 am  Show Profile   Bookmark this reply Add jbuck to your friends list Get a Link to this Reply

Quote:
The platinum $1T coin itself is only $1545, but the overnight shipping will be $999,999,998,455.



Quote:
The one thing that's missing with this idea is who would supply the money to buy the coin...
No one has to buy it. The USA mints the coin and deposits it in the FED bank and the USA account balance is instantly $1 Trillion higher. It is really that simple.
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