Treasury Department says “No $1 trillion coin quick fix on debt limit”

Treasury Department says “No $1 trillion coin quick fix on debt limit”





January 13, 2013

A
Treasury Department spokesman announced today that the department will
not mint a platinum coin to sidestep raising the federal government’s
borrowing limit,telling the Washington Post that
“neither the Treasury Department nor the Federal Reserve believes that
the law can or should be used to facilitate the production of platinum
coins for the purpose of avoiding an increase in the debt limit.”

The idea, which had gained traction among some congressional
Democrats and political analysts as a way of defanging the debt ceiling
as a bargaining chip, was that the Treasury Department could simply mint
a platinum coin, declare the value at $1 trillion, and deposit it into
the Federal Reserve to allow continued spending in the absence of a vote
to raise the debt ceiling. With the idea now buried by Treasury, the
stage is set for a full-on fight about the debt ceiling. President Obama
and congressional Democrats have signaled that they simply will not
negotiate on a vote to raise the borrowing limit, saying that it is
Congress’s duty to pay bills it has already accrued. But congressional
Republicans have given every indication that they plan to use the debt
limit as a bargaining chip to extract deep spending cuts from reluctant
Democrats. CBS News

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