“Can a 1 Trillion Dollar Platinum Coin Save the US from Defaulting on its Debt Ceiling?”

Still more debt – In the United States, the debt ceiling (debt ceiling) is a recurring topic which is not about to know an end. At least, as long as the United States can still avoid default on their colossal debt (its repayment seeming impossible). The Republican Party, which has the majority in the House of Representatives, is making life difficult for the administration of Joe Biden, who would like to increase this debt ceiling without further discussion. This is where the idea of ​​a 1 trillion dollar platinum coin.

A debt of 32 trillion dollars: it is not enough

Say that the United States live beyond their means for many years is an understatement. There public debt of the country exploded during the economic crisis of 2008. But its stratospheric rise especially took place during the no matter what » des restrictions Covid (2020-2022).

As of this writing, US debt stands at $31.7 trillion. And now the race raising the ceiling of this debt started all over again, to avoid the payment default of the country next month. Because, without action, the Secretary of State for the Treasury – Janet Yellen – announces this inevitable default of the USA for June 2023.

With President Biden’s administration challenged by the Republican majority in the House of Representatives, she resurrected an idea that had already arisen under the obama presidencyfor the same problem of debt ceiling back then… Hit a platinum coin with a face value of 1 trillion dollars.

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A piece of several thousand tons of platinum? No, just monkey money

According to the course of platinum at the time of this writing, the once troy (i.e. approximately 31.1 grams) is trading towards the 1 110 dollars. We would therefore need a coin with a weight of 28,571 tons (yes, tons) of this precious metal so that she worth its weight in platinum (not peanuts). Amusing anecdote by the way, this represents about two-thirds of the Charles de Gaulle aircraft carrier, which weighs 42,500 tons fully loaded…

As you will have understood, the White House’s 1,000 billion dollar coin would therefore not never the above weight. As the reports especially bitcoin[.]com, this “unusual tactic” would operate a law void which allows the US Treasury Department to mint platinum coins “of any value”.

All the ends of empiresfrom Rome, were marked by the fact of crop more and more on the weight/proportion of precious metal in gold and silver coins (by tempting, in vain, to keep the same nominal value). Except that there, the gap would be such that the verb ” crop » no longer fits.

The only ” advantage for the US government in this (false?) coinage is that it would not require the intervention of Federal Reserve money printing American (the Fed). Remember that this central bank is indeed supposed to be independent of the federal government. So, is the US going to put a trillion coin back into the debt machine? Of the compromises and political concessions remain the most likely (classic) outcome.

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