Some Democrats want to mint a $1 trillion platinum coin to avoid a potential debt crisis.
Two years ago, Congress suspended the debt ceiling — which bars the federal government from assuming a certain level of national debt — until August 2021. Because Congress has so far failed to vote on continuing the suspension or increasing the limit, Treasury Secretary Janet Yellen is warning that the federal government will run out of money on October 18.
As a result, some Democrats are resurrecting a proposal to mint a $1 trillion coin made of platinum and deposit it at the Federal Reserve — an accounting trick that would theoretically retire $1 trillion in government debt.
As Newsweek explains:
The idea of minting a trillion-dollar commemorative coin to shore up the nation’s finances comes from an obscure law that gives the U.S. Treasury Secretary the authority to “mint and issue platinum bullion coins and proof platinum coins in accordance with such specifications, designs, varieties, quantities,