Economically illiterate Biden may mint a $1trillion coin.
Yes, you read the headline correctly. Biden’s last ditch attempt to surge the Treasury’s value has proven his economic illiteracy.
With Congress unable to come to an agreement on a way to raise the country’s debt limit, the Biden Administration can mint a $1 trillion coin at the last minute. However, this will only happen if Treasury Secretary Janet Yellen should decide to use that option to safeguard the nation’s debt as a large-scale crisis looms.
The Treasury Secretary called the idea a ‘gimmick’ in an interview with CNBC. Yellen previously said that her department would run out of money by October 18th.
However, Philip Diehl, director of the US Mint from 1994 to 2000, said there is no shortage of platinum blanks to mint the coin – the law requires it to be made of that material.
The mint already produces a platinum eagle coin. Printing a trillion-version of it would merely require the denomination to be changed to a 1 with 12 zeros.
The coin would be produced at the US Mint in West Point, New York, then taken to the Federal Reserve branch in New York City. It would have to be deposited because the Treasury can’t introduce new currency into circulation – only the Fed can do that.
But if the coin sits in the bank, its value would be added to the Treasury’s general account and can be used for the nation’s bills.
Constitutional scholars have argued that the 14th Amendment could be invoked which would override the debt limit. White House press secretary Jen Psaki said Monday the administration has looked at other options and ‘none of those options were viable.’
Psaki also reiterated Monday that the only way forward through the issue is through “Congress acting”. It remains to be seen what else Biden will do to cripple the country in every way possible. Wirth even the president’s own administration officials regarding his idea a “gimmick”, this shows that the president is in trouble.