Saturday, January 5, 2013

Can a $1 Trillion Coin End The Debt Ceiling Crisis?

A wild and crazy idea?  BI”s Henry Blodgett writes: An amusing idea is beginning to take hold among the country's leading economic thinkers.  If the Republicans in Congress are really irresponsible and outrageous enough to hold the reputation and economy of the United States of America hostage to win a few re-election points, then perhaps the appropriate response is for the Treasury to save the country by minting a "trillion-dollar coin."

If you're like most people, you'll jump to the wrong conclusion when you hear about this "trillion-dollar coin." You'll think that the "trillion dollar coin" is just another way for the government to print money out of thin air to pay for spending we can't afford.

But that's actually not what the "trillion-dollar coin" idea is. The "trillion-dollar coin" is just a legal gimmick that responsible people in the U.S. government might use to enable the country to pay bills and honor prior commitments ... without relying on a group of selfish, irresponsible people in Congress to first raise the debt ceiling first…..

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