The trillion-dollar coin is an idea to save the United States from bankruptcy. Supporters of the idea say the U.S. government should mint a trillion-dollar platinum coin to sidestep the debt ceiling and somehow avoid defaulting on the debt. In January 2013, the Treasury Department put the idea down. It said it was illegal. In February, American Mint issued a platinum-plated collector's coin that shows what the trillion-dollar coin could look like.
The coin would be deposited at the Federal Reserve. It would improve the government's account thereby. The government could borrow another one trillion dollars. The government would avoid the fiscal cliff or debt limit.
Why one trillion? It is a nice number. It is still manageable in a sentence. It does not have too many zeros. Some say it should be two trillion dollars. As the situation is, it might well come to be.
One trillion … How many 1 oz platinum coins would that be? In the U.S., a trillion is 1,000,000,000,000. One troy ounce (1 oz tr) equals 31,1035 g. The government would need 32 billion (32,150,722,587.5) 1 oz platinum coins.
Federal borrowing has officially reached the USD 16.394 trillion debt ceiling. The U.S. will default on its debts unless Congress acts. I have no clue what happens next. What I do know is how I can protect my money if inflation prevails. I pack my stack
|Is it legal?||No|
Huffington Post: "The legality of a trillion-dollar coin is strange but valid. Basically, the U.S. government is not allowed to issue unlimited amounts of paper currency but can do so for platinum coins. What that means is that theoretically the Treasury could mint a single trillion-dollar coin and hand it to the Federal Reserve (instead of the customary Treasury securities), which would then give the government the cash it needs to pay its bills."
Seattle Post Intelligencer: "Analyst: Obama Will Raise the Debt Ceiling on His Own and Worry About the Legal Consequences Later" - "There was the trillion-dollar coin idea, whereby the government mints itself out of trouble via an arcane bullion law. Then there was the 14th amendment option. Here, the government would have to take a modern interpretation on the civil war-era amendment about the 'validity of the public debt of the United States', and surely face legal action."