Trillion-dollar coin creation campaign launched to avoid US debt ceiling, White House petition saysBy Angel Cuala on Jan 5, 2013 in Economy, Finance, United States •
A US trillion-dollar coin creation is now the subject of a new White House petition, and is being believed to solve the US debt ceiling, which is now under debate among the politicians and President Barack Obama. The hashtag #mintthecoin was spread on Twitter, calling the US Treasury to mint a $1-trillion platinum coin.
“With the creation and Treasury deposit of a new platinum coin with a value of $1 trillion US Dollars, we would avert the absurd-yet-imminent debt ceiling faceoff in Congress in two quick and simple steps!” A statement reads on the White House ‘Mint the Coin’ petition, which was created on Thursday, January 3, 2013.
“While this may seem like an unnecessarily extreme measure, it is no more absurd than playing political football with the US — and global — economy at stake.” The trillion-dollar coin petition added, which has 3,268 signatures as of this writing, but needs 25,000 signatures by February 2, 2013 before White House can respond.
Apparently, the trillion-dollar coin proposal was first heard in 2011 to avoid the US Congress to raise the country’s borrowing limit. However, it became more popular in the late 2012 until Rep. Jerrold Nadler, (D-NY 10th District) formally suggested it, emphasizing that he is very serious about the idea.
“There is specific statutory authority that says that the Federal Reserve can mint any non-gold or -silver coin in any denomination, so all you do is you tell the Federal Reserve to make a platinum coin for one trillion dollars, and then you deposit it in the Treasury account, and you pay your bills,” Rep. Nadler earlier told Capital New York.
Interestingly, the creation of trillion-dollar coin is legal, as stated on the US Code (31 U.SC. Section 5112), stating that “The Secretary may mint and issue bullion and proof platinum coins in accordance with such specifications, designs, varieties, quantities, denominations, and inscriptions as the Secretary, in the Secretary’s discretion, may prescribe from time to time.”
But is it practical? Can it really solve the US debt ceiling? Or is it just another ridiculous suggestion from those who do not fully understand the principles of economy? No worries, most observers noted that it is very much unlikely to happen.
White House petition to US Treasury to mint a trillion-dollar coin
Screenshot Credit: Petitions.WhiteHouse.gov
Spread The News!