THE PLATINUM COIN IDEA GOES MAINSTREAM

CNN is running a story on the various ways the White House could circumvent the debt ceiling issue.  One of the options they mention is the platinum coin idea started by Beowulf:

“Are there other ways for the president to raise money besides borrowing?

Sovereign governments such as the United States can print new money. However, there’s a statutory limit to the amount of paper currency that can be in circulation at any one time.

Ironically, there’s no similar limit on the amount of coinage. A little-known statute gives the secretary of the Treasury the authority to issue platinum coins in any denomination. So some commentators have suggested that the Treasury create two $1 trillion coins, deposit them in its account in the Federal Reserve and write checks on the proceeds.”

Of course, none of this matters because the President has already stated publicly that he won’t even use the 14th Amendment.  In my opinion, that makes it highly unlikely that he would even consider another option.  That means the Republicans are almost guaranteed to get something for nothing here….

 

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Cullen Roche

Mr. Roche is the Founder of Orcam Financial Group, LLC. Orcam is a financial services firm offering research, private advisory, institutional consulting and educational services.

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