Weigh in the US the minting of a coin of 1 trillion dollars to avoid the so-called “default”

WASHINGTON, May 26th. As Republicans and Democrats continue to debate the US debt ceiling, the White House is getting lawsuits over a surprise $1 trillion platinum coin.

With such a strange decision, the Joseph Biden administration will seek to avoid the bankruptcy and default of the federal government.

If an agreement is not reached by June, the government in Washington will not be able to meet its financial obligations, and this could have serious consequences for the US and the global economy, BBC commented.

Several experts and analysts are back to talk about a far-fetched option of last resort: issuing a $1 trillion platinum coin to save the country from monetary bankruptcy. Trillion coin advocates point out that the 1997 law allows the Treasury Secretary to mint platinum coins of any denomination for any reason.

Those who welcome the minting of this currency say that, given the impossibility of reaching agreement in Congress on an increase in the national debt ceiling, it would serve to finance government spending.

If they decide to issue a coin, they will simply write 1 trillion on round metal and send it to the Federal Reserve, Philip Diehl, former director of the US Mint, explained on public radio station NPR. According to Deal, a platinum coin can be about the size of an old coin you carry in your pocket.

He wouldn’t even need to list all the zeros for him to be worth 1 trillion. It would have been enough for the words to point to that denomination, he pointed out.

If there is a choice between defaulting and minting the currency, the executive branch has no right to default, said Rohan Gray, a law professor at Willamette University in Oregon.

The possibility of a $1 trillion coin was first reported in 2010 in the comment section of a blog dedicated to unconventional monetary policy. Treasury Secretary Janet Yellen rejected the idea outright, as did other Biden administration officials.

Source: Juventud Rebelde


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