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 Replies: 21 / Views: 2,738 |
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Pillar of the Community
United States
1913 Posts |
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.htmlThe 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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Moderator
 United States
187702 Posts |
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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Pillar of the Community
United States
1005 Posts |
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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Bedrock of the Community
 United States
12477 Posts |
My understanding is that increasing the money supply causes inflation. How would this be any different?
In Memory of Crazyb0 12-26-1951 to 7-27-2020
In Memory of Tootallious 3-31-1964 to 4-15-2020
In Memory of T-BOP 10-12-1949 to 1-19-2024
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Valued Member
United States
292 Posts |
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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Pillar of the Community
United States
5177 Posts |
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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Bedrock of the Community
United States
19126 Posts |
A nice road rash candidate.
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CCF Master Historian of USA Commemoratives
United States
12257 Posts |
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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Pillar of the Community
United States
3640 Posts |
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.
Member of SPMC, FCCB, ANA and ANS. My U.S. Classic Commemorative Complete Set: https://www.NGCcoin.com/registry/co...sets/278741/My U.S. Fractional Note Set: https://notes.www.collectors-societ...eSetID=34188 |
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Moderator
Australia
16809 Posts |
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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Pillar of the Community
 United States
1913 Posts |
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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Valued Member
United States
292 Posts |
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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Valued Member
United States
88 Posts |
This is just stupid on so many levels.
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Rest in Peace
United States
2668 Posts |
...and brilliant in a couple.
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Bedrock of the Community
Australia
21786 Posts |
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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Moderator
United States
187702 Posts |
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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Replies: 21 / Views: 2,738 |
Posted 10/05/2021 4:56 pm
