The concept of minting a trillion dollar coin has traction — and it should. Both houses of congress are held hostage to crazies. Rather than another foolish round of reporting about increasing the debt ceiling, the president can end the problem with a platinum coin.
Because of arcane laws. Congress wrongly has the right to approve payment of bills it has already incurred, when those bills exceed cash in the treasury. Another arcane law comes to the rescue. Paul Krugman’s explanation is succinct:
“Here’s how it would work: The Treasury would mint a platinum coin with a face value of $1 trillion (or many coins with smaller values; it doesn’t really matter). This coin would immediately be deposited at the Federal Reserve, which would credit the sum to the government’s account. And the government could then write checks against that account, continuing normal operations without issuing new debt.”
The idea does nothing more than halting a right-wing minority from throwing all possible obstacles before the president, the country be damned.
After that, it is back to business, fighting for common sense each step of the way. Gotta be done.
UPDATE: Krugman tells Bill Moyers he wouldn’t have accepted the draft as Treasury Secretary. He thinks he has more influence now.