Why the $1 trillion coin campaign is good for America
By meeting absurdity with absurdity, "mint the coin" advocates may show debt-ceiling hostage takers the recklessness of their own premises


As I follow the back-and-forth over the platinum coin option, I've come to appreciate that its most vocal champions — Business Insider's Joe Weisenthal, Bloomberg's Josh Barro, and The Atlantic's Matthew O'Brien — are doing the public (or at least that portion of the public that pays attention to esoteric fiscal policy) a great service.
For the uninitiated, the platinum coin option is a hypertechnical end-run around the federal debt limit statute. Citing a 1996 law governing the minting of collectors' coins, the treasury secretary could theoretically deposit a $1 trillion coin or two at the Federal Reserve and temporarily bypass a vote of Congress to increase the debt ceiling.
There is, you must admit, a diabolical ingenuity to the idea; it's like the fiscal policy wonk's version of the ending of The Firm, in which a John Grisham hero who'd been employed by a corrupt Memphis law firm gift-wrapped a mail-fraud case to the FBI and avoided disbarment in one fell swoop. It's like getting Al Capone on tax evasion. But there is more than mere entertainment value to the platinum coin campaign; there is also pedagogic value.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
In their arguments against the platinum coin, opponents misunderstand its purpose in such a way that suggests they don't understand the debt ceiling itself. Rep. Greg Walden, who introduced a bill to explicitly prohibit the platinum coin, said in a statement:
This scheme to mint trillion-dollar platinum coins is absurd and dangerous. My wife and I have owned and operated a small business since 1986. When it came time to pay the bills, we couldn't just mint a coin to create more money out of thin air.
Similarly, an unsigned Washington Examiner editorial dismissively explains it this way: "The Treasury could then deposit these coins at the Federal Reserve and use those funds to pay off our debts." Phrases like this are misleading at best. Coin advocates do not pretend that the federal government can meaningfully retire debt by printing money. As Barro explains:
If the government financed itself this way in general, that would absolutely be inflationary. But the president can hold inflation expectations steady by making absolutely clear that the policy will not lead to a net change in the money supply over the long term. Obama should pledge that once Congress authorizes additional borrowing, he will direct the Treasury to issue bonds to cover the government's coin-backed spending and then to melt the coin. [Bloomberg]
Plainly, the aim of the platinum coin is not to "pay the bills," but ultimately to borrow more money.
That critics think of the coin this way adds to my suspicion that they approach the debt ceiling under the same misimpression. The 1917 debt limit statute transfers the power to borrow money in the public's name — which the Constitution grants to Congress — to the Treasury Department. This power is not a "blank check" to borrow money for the hell of it. Its purpose is to meet financial obligations necessitated by laws previously enacted by Congress. Consider the fiscal cliff deal, which will add nearly $4 trillion to federal deficits over the next decade. Does it make any sense to believe that the same Congress that codified those expenditures should be able to restrict a future treasury secretary from financing them?
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
I'm not savvy enough to confidently predict that courts would uphold the minting of the platinum coin, or that markets wouldn't greet the maneuver with the same horror they would a default. Yet at the same time, I'm even less persuaded by the reassurances that we can weather a debt-limit crisis without actually defaulting on our debt.
Playing chicken with the debt ceiling is in truth every bit as absurd and dangerous as the platinum coin. And by meeting absurdity with absurdity, danger with danger, the "mint the coin" campaign may help would-be debt-ceiling hostage takers realize the recklessness of their own premises.
Scott Galupo is a senior contributor at The American Conservative. Follow him on Twitter: @ScottGalupo.
Scott Galupo is a freelance writer living in Virginia. In addition to The Week, he blogs for U.S. News and reviews live music for The Washington Post. He was formerly a senior contributor to the American Conservative and staff writer for The Washington Times. He was also an aide to Rep. John Boehner. He lives with his wife and two children and writes about politics to support his guitar habit.
-
Today's political cartoons - March 29, 2025
Cartoons Saturday's cartoons - my way or Norway, running orders, and more
By The Week US Published
-
5 tactically sound cartoons about the leaked Signal chat
Cartoons Artists take on the clown signal, baby steps, and more
By The Week US Published
-
Roast lamb shoulder with ginger and fresh turmeric recipe
The Week Recommends Succulent and tender and falls off the bone with ease
By The Week UK Published
-
The JFK files: the truth at last?
In The Spotlight More than 64,000 previously classified documents relating the 1963 assassination of John F. Kennedy have been released by the Trump administration
By The Week Staff Published
-
'Seriously, not literally': how should the world take Donald Trump?
Today's big question White House rhetoric and reality look likely to become increasingly blurred
By Sorcha Bradley, The Week UK Published
-
Will Trump's 'madman' strategy pay off?
Today's Big Question Incoming US president likes to seem unpredictable but, this time round, world leaders could be wise to his playbook
By Sorcha Bradley, The Week UK Published
-
Democrats vs. Republicans: who are the billionaires backing?
The Explainer Younger tech titans join 'boys' club throwing money and support' behind President Trump, while older plutocrats quietly rebuke new administration
By Harriet Marsden, The Week UK Published
-
US election: where things stand with one week to go
The Explainer Harris' lead in the polls has been narrowing in Trump's favour, but her campaign remains 'cautiously optimistic'
By Harriet Marsden, The Week UK Published
-
Is Trump okay?
Today's Big Question Former president's mental fitness and alleged cognitive decline firmly back in the spotlight after 'bizarre' town hall event
By Harriet Marsden, The Week UK Published
-
The life and times of Kamala Harris
The Explainer The vice-president is narrowly leading the race to become the next US president. How did she get to where she is now?
By The Week UK Published
-
Will 'weirdly civil' VP debate move dial in US election?
Today's Big Question 'Diametrically opposed' candidates showed 'a lot of commonality' on some issues, but offered competing visions for America's future and democracy
By Harriet Marsden, The Week UK Published