Treasury nixes $1 trillion platinum coin
Neither Treasury nor Federal Reserve believes its legal to use platinum coins to avoid debt-limit increase, Treasury spokesman says. With $1 trillion platinum coin out, administration ponders other debt-limit strategies.
Neither Treasury nor Federal Reserve believes its legal to use platinum coins to avoid debt-limit increase, Treasury spokesman says. With $1 trillion platinum coin out, administration ponders other debt-limit strategies.
Ezra Klein聽reports an official statement from Anthony Coley, a Treasury spokesperson, killing the platinum coin strategy:
So R.I.P. platinum coins of 聽unusual size.
The administration has previously ruled out another oft-discussed debt-limit safety valve, overriding the limit based on the 14th amendment. So 鈥淧lan B鈥� discussions will now move to two other alternatives that have been bandied about: prioritizing payments or, as聽Ed Kleinbard suggested the other day, issuing scrip like California did a couple years ago. Of course, issuing scrip *is* prioritizing payments, but with the added feature (or complication) of a written, transferable IOU.