Could We Solve the Debt-Ceiling Crisis With Trillion-Dollar Coins?

By
One TRILLION dollars. Photo: Christopher Furlong/Getty Images

Here's one way out of the debt-ceiling impasse, courtesy of well-known Yale constitutional-law professor Jack Balkin:


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.

We don't know, this proposal seems kind of ... bizarre. Why mint two trillion-dollar coins when you can just mint a single two-trillion-dollar coin? Other than that, it's perfect.

3 ways Obama could bypass Congress [CNN]