The coin that could avert a federal debt bailout

Axios/Felix Salmon/10-3-2021

graphic rendering of $1 trillion platinum coin“The gambit, if successful, would prevent the potentially catastrophic debt default that, thanks to Congressional intransigence on both sides of the aisle, is looming fast. When a U.S. Treasury secretary is tasked with averting a fast-looming potential cataclysm, she has to consider all possible options — even those that seem bizarre at first light.”

USAGOLD note 1: Bizarre indeed. The trillion-dollar platinum coin is nothing more than a contrivance to print money. Why not print 100 of them and distribute the proceeds to the American people? All would be rich for a day…or an hour. Then prices would blow through the roof as the dollar went the way of Venezuela’s bolivar. This article lists luminaries in favor of the idea – all big names on the ultra-left of the American political scene. Of course, the essential question is Who would buy this coin? This article provides the answer: The New York Federal Reserve (of course)! No one else would ……

USAGOLD update: Treasury Secretary Janet Yellen wisely “torched” the platinum coin gambit yesterday saying it should not be considered seriously, according to this report posted at Business Insider.  In the end, cooler heads prevailed, although the battle over the debt ceiling and the latest Biden stimulus plan rages on in Congress.

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