Coin of the Realm
January 4, 2013 5:51 PM Subscribe
An idea to mint a trillion dollar coin
posted by Brian B. (151 comments total)
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is seriously proposed as a desperate legal maneuver against allowing the US government to go into default
.According to one proponent: The premise of the idea is this: Although the Treasury can't just create money out of thin air to pay its bills, there is a technicality in the law that says the Treasury has special discretion to create platinum coins of any denomination, and the thinking is that Tim Geithner could make the coin and walk it over to the Federal Reserve and deposit it in the Treasury's bank account.
Hyperinflation and other concerns are also addressed. The bottom line is: Because this trillion dollar coin isn't being used as "helicopter money" (money dropped directly into the economy) you don't get the inflationary effects you're used to seeing when you hear about governments creating money in large denominations.
A petition seeking 25,000 signatures is described here