How the $1 trillion platinum coin would work, and how it could defuse the debt standoff
After weeks of high-stakes brinksmanship over raising the debt limit, Senate Democrats and Republicans appeared close to a deal early Thursday to, well, defuse the self-inflicted crisis for an entire three months. At some point, everybody seems to agree, 50 Democrats and Vice President Kamala Harris will raise the debt limit; the only question is how difficult Republicans will make the process.
Or, Treasury Secretary Janet Yellen could just mint a $1 trillion platinum coin and deposit it at the Federal Reserve. Discussion of the $1 trillion coin has been a mix of "clearly half-joking commentary on the nature of money itself," half-serious concerns about inflation and mixing monetary and fiscal policy, and "entirely sincere" assertions that a platinum coin is "a feasible solution for lowering the debt," Philip Bump writes at The Washington Post.
How would it work? Well, the Commemorative Coin Authorization and Reform Act of 1995 authorizes Yellen to "mint and issue bullion and proof platinum coins" in any "denominations" she chooses. Former U.S. Mint director Philip Diehl tells Axios that a $1 trillion coin could be designed and minted "within hours," drawing from a stockpile of platinum blanks.
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.
Actually making the coin would take "minutes," Axios' Felix Salmon writes, and "if it then needed to be physically deposited at the New York Fed, that's only a short helicopter ride away" from a mint near New York's West Point military academy. Bump estimates that a Chinook helicopter could get the platinum coin from the West Point mint to the Federal Reserve Bank of New York in about 22 minutes.
"The mint sits conveniently close to a golf course," and "if you leave the mint via the loading dock on its western side, it's about 0.2 miles to the closest large green," where the Chinook can land, Bump writes. After a 15 minute ride, "there's a helipad on the East River not far from the bank," and "then it's pretty straightforward," he adds: "Get in a car, head north under the FDR on surface streets and take a left on Maiden Lane. The door to the bank is up on the left."
If that sounds like the setup to a heist movie, well, you're not wrong. It's hard to imagine a thief being able to cash or deposit the world's only $1 trillion coin, but it would be legal U.S. tender —as The Simpsons cautioned in 1998.
Or, Bump shrugs, "Congress could just raise the debt ceiling as they always do."
Create an account with the same email registered to your subscription to unlock access.
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
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
Can Trump get a fair trial?
Talking Points Donald Trump says he can't get a fair trial in heavily Democratic Manhattan as his hush money case starts
By Harold Maass, The Week US Published
-
Crossword: April 24, 2024
The Week's daily crossword
By The Week Staff Published
-
Sudoku hard: April 24, 2024
The Week's daily hard sudoku puzzle
By The Week Staff Published
-
'Elevating Earth Day into a national holiday is not radical — it's practical'
Instant Opinion Opinion, comment and editorials of the day
By Harold Maass, The Week US Published
-
Ukraine cheers House approval of military aid
Speed Read Following a lengthy struggle, the House has approved $95 billion in aid for Ukraine and Israel
By Peter Weber, The Week US Published
-
'Republicans want to silence Israel's opponents'
Instant Opinion Opinion, comment and editorials of the day
By Harold Maass, The Week US Published
-
Poland, Germany nab alleged anti-Ukraine spies
Speed Read A man was arrested over a supposed Russian plot to kill Ukrainian President Zelenskyy
By Peter Weber, The Week US Published
-
Israel hits Iran with retaliatory airstrike
Speed Read The attack comes after Iran's drone and missile barrage last weekend
By Peter Weber, The Week US Published
-
Peter Murrell: Sturgeon's husband charged over SNP 'embezzlement' claims
Speed Read SNP expresses 'shock' as former chief executive rearrested in long-running investigation into claims of mishandled campaign funds
By Arion McNicoll, The Week UK Published
-
Mark Menzies: Tories investigate MP after 'bad people' cash claims
Speed Read Fylde MP will sit as an independent while party looks into allegations he misused campaign funds on medical expenses and blackmail pay-out
By Arion McNicoll, The Week UK Published
-
'A direct, protracted war with Israel is not something Iran is equipped to fight'
Instant Opinion Opinion, comment and editorials of the day
By Harold Maass, The Week US Published