CNN: US hits debt ceiling, prompting Treasury to take extraordinary measures. FT: The Fed will have to accept the $1tn platinum coin
Platinum USA $100 Coin
The USA hit its official debt limit today:
US hits debt ceiling, prompting Treasury to take extraordinary measures
January 19, 2023
The US hit the debt ceiling set by Congress on Thursday, forcing the Treasury Department to start taking extraordinary measures to keep the government paying its bills and escalating pressure on Capitol Hill to avoid a catastrophic default. https://www.cnn.com/2023/01/19/politics/debt-ceiling-deadline-treasury/index.html
January 19, 2023
The … the federal government will on Thursday reach its legal borrowing capacity of $38.381 trillion, an artificially imposed cap that lawmakers have increased roughly 80 times since the 1960s. …
Biden insists on a clean increase to the debt limit so that existing financial commitments can be sustained, refusing to even start talks with Republicans. McCarthy is calling for negotiations that he believes will lead to spending cuts. It’s unclear how much he wants to trim and if his fellow Republicans would support any deal after a testy start to the new Congress that required 15 rounds of voting to elect McCarthy speaker.
Asked twice Wednesday if there was evidence that House Republicans can ensure that the government will avert a default, White House press secretary Karine Jean-Pierre said it’s their “constitutional responsibility” to protect the full faith and credit of the United States. …
In order to keep the government open, the Treasury Department on Thursday was introducing a series of accounting maneuvers known as “extraordinary measures.” These measures put a hold on contributions and investment redemptions for government workers’ retirement and health care funds, giving the government enough financial space to handle its day-to-day expenses until roughly June. https://apnews.com/article/us-debt-limit-political-friction-3652d50a1567c1e7ab544614b7f2b357?utm_source=homepage&utm_medium=TopNews&utm_campaign=position_02
Here is more related to it:
It’s that time again when the US government has to prepare itself for an internal battle to raise the debt ceiling so it can meet various obligations. …
For sure, every time it happens fewer and fewer people are convinced of the trustworthiness of the US dollar. This combined with the recent announcement by Saudi Arabia of its willingness to consider trading in currencies other than the US Dollar and the Euro suggests that the era of US Dollar hegemony may be in its final act. …
The debt ceiling was created in 1917 under the Second Liberty Bond Act also known as the debt limit or statutory debt limit. …
The debt ceiling has been raised 78 times since 1960, the most recent time was in December 2021 to $31.4 trillion. …
Congress raising the debt ceiling does not approve or incur any new spending, but instead, it authorizes the U.S. Treasury to borrow to pay for expenses that Congress has previously approved. …
Governments continue to add to their debt levels – and most likely pushing the debt ceiling debate to the limit of breaking Congress. Also, the White House will come to a resolution that will again ‘kick the can down the road’ as fiscal spending continues to rise.
However, a time will come when Congress pushes that little bit too far and faith in the U.S. dollar and debt is permanently damaged, and with so many countries already looking for alternatives to the U.S. dollar this will accelerate that momentum further. https://www.zerohedge.com/news/2023-01-19/what-happens-if-debt-ceiling-raises
The fact that the “debt ceiling” has been raised 78 times suggests that it will be raised again. Although there may be delays and arguments, the trajectory is for the USA to continue to increase its debt.
Instead of seriously cutting spending, more deficit spending is expected–this is not good.
One way to cut spending is to reduce the debt, which then reduces interest payments.
Politicians may have been offered a way to pretend to do that.
How?
Well, the idea of pretending to pay down the official debt of the USA with a trillion dollar platinum coins is again being promoted. Here is something on that from the Financial Times:
The Fed will have to accept the $1tn platinum coin
The US is approaching yet another self-inflicted debt-ceiling crisis, and that means it’s time to revisit a proposal to circumvent the entire contrived drama by minting a $1tn coin and depositing it with the Federal Reserve. …
Word is that the Biden administration has one core objection: they do not believe the Fed will accept the coin. This is consistent with comments from a White House spokesperson in 2021. Without the Fed’s co-operation, the argument goes, there is no way to turn the coin into funds to make bank payments. …
Avoiding catastrophic default — or needless austerity — is on the line. 01/18/23 https://www.ft.com/content/3e9d6924-42af-4892-951e-dee36a020ea7
The US Federal Reserve must realize that to accept trillion dollar coins to repay some or all of the debt will hurt the “full faith and credit” of the USA.
That said, this absurd “solution” for the USA to pay off its debt by issuing trillion dollar platinum coins has been coming since 2007/2008. Here is something related to it from 2020:
April 2, 2020
Nations are going through trying times, and they have to get creative in the fight against the coronavirus pandemic. In the United States, Democratic Congresswoman Rashida Tlaib is among those who say that extraordinary circumstances require extraordinary responses. …
For the first time in US history, public debt could hit the $25-trillion mark this year. Several trillions are needed to cushion the impact of the coronavirus alone. But because the US administration is not allowed to have the Federal Reserve print or rather digitally create more money just like that, it usually issues new sovereign bonds.
But there’s another option, says Rashida Tlaib, basically because of a legal loophole still in place.
While the US Treasury Department is not allowed to mint coins made of copper, silver or gold, it is allowed to mint platinum coins and make them legal tender. This goes back to a 1997 law originally relating to commemorative coins. There are no known restrictions as to the face value of such coins as long as they contain a certain amount of platinum. …
The idea dates back to the 2007/2008 global financial crisis, but both the government and the central bank turned it down back then. This time around, the chances of the proposal becoming a reality are just as slim. https://www.dw.com/en/us-fighting-coronavirus-induced-debt-with-two-trillion-dollar-supercoins/a-52991692
Also, this idea was also floated publicly back in 2013 to deal with various debt issues the US had, but it was not implemented then:
US ‘seriously’ considering $1 trillion coin to pay off debt
7 January 2013
The US is “seriously” considering creating a $1 trillion platinum coin to write down part of its debt to stop the world’s largest economy defaulting as early as next month, according to financial analyst Cullen Roche. http://www.telegraph.co.uk/finance/financialcrisis/9784898/US-seriously-considering-1-trillion-coin-to-pay-off-debt.html
11 January 2013
The real purpose of the trillion-dollar-coin idea might be too obvious to need stating: It’s another thing to argue about instead of attending to the actual problem … the Treasury is using various accounting maneuvers to keep on spending anyway. Its estimate of how long that can go on, if tested, will likely prove conservative. After these maneuvers, there’ll be more maneuvers …
the Treasury can keep borrowing regardless, citing the 14th Amendment, pushing the issue to the courts, which I’m willing to bet wouldn’t rule to put the country into default. Or it can mint ultra-high-value coins, the current fave topic. Or it can more mundanely issue IOUs, following Califormia’s example. Assuming the confusion doesn’t cause the U.S. to default by accident, the biggest cost in all this is damage to the country’s reputation. http://www.bloomberg.com/news/2013-01-11/platinum-coins-and-other-amusing-distractions.html
The USA’s governmental handling of debt and certain other economic issues will make it the economic laughing stock around the world.
The basic proposal is/was to change the denomination of something like a $100 coin (the coin shown at the beginning had a face currency value of up to $100 when it was made) to $1,000,000,000,000 and this will pretend to pay down the debt by a trillion dollars–this is a DISHONEST PROFIT. The reality is that the above and other games (“quantitative easing” comes to mind) may continue to “kick the can down the road” for a while, but not forever. The USA needs to produce more and spend less. Producing a coin containing about $1,000 of platinum does not produce a trillion dollars worth of goods/services. But some in the USA want to pretend otherwise.
As morally wrong as pretending platinum coins are worth a trillion dollars each and can pay down some, or perhaps nearly all in the future, of US debt would be, do not be surprised if something like this happens in the future. The US simply cannot afford paying interest on the debt and something absurd may well be agreed to in Washington, D.C. to pretend to erase the debt. The US Federal Reserve has often been playing paper games (essentially ‘legally’ counterfeiting money) through its quantitative easing as ‘asset’ purchasing programs, off and on, for years.
Now, the USA has been able to get away with its financial shenanigans better than many other nations for several reasons. But the major one is probably because the world still accepts the US dollar (for many reasons) as its reserve currency. Increasing debt, however, is increasing national investments in gold and currencies other than the US dollar for many countries. Some nations are trying to eliminate the U.S. dollar as the world’s reserve currency, and the United Nations has urged countries to do that. Yet most still use/have a lot of U.S. dollars.
However, when the U.S. dollar is no longer the de facto reserve currency for the world, this will massively hurt the U.S.A. financially.
Notice how Ezekiel’s writings confirm that those who made profits improper will be punished:
13 “Behold, therefore, I beat My fists at the dishonest profit which you have made, and at the bloodshed which has been in your midst. 14 Can your heart endure, or can your hands remain strong, in the days when I shall deal with you? I, the Lord, have spoken, and will do it. 15 I will scatter you among the nations, disperse you throughout the countries, and remove your filthiness completely from you. (Ezekiel 22:13-15)
Borrowing money that will not be paid back, as well as pretending that less than $1000 worth of platinum is worth $1,000,000,000,000 is a “dishonest profit.” The American and British peoples have been living on debt and dishonest profits for the past several years–and the “solution” seems to be to continue to do so.
Inflation will eventually hit the U.S.A. extremely hard. As the world becomes less attached to the American dollar, many financial jobs and opportunities will be in places other than the U.S.A. Eventually, the U.S.A. dollar will become worthless.
At some point in time, the USA will likely start to experience massive inflation. And afterwards, its creditors will rise up (Habakkuk 2:7).
The Bible warns against the type of moral decline that is occurring in the U.S.A.:
12 Therefore thus says the Holy One of Israel: “Because you despise this word, And trust in oppression and perversity, And rely on them, 13 Therefore this iniquity shall be to you Like a breach ready to fall, A bulge in a high wall, Whose breaking comes suddenly, in an instant. (Isaiah 30:12-13)
But how can this happen to the USA? It will likely happen with a combination of events. Notice the following:
5 “Moreover the multitude of your foes Shall be like fine dust, And the multitude of the terrible ones Like chaff that passes away; Yes, it shall be in an instant, suddenly. 6 You will be punished by the Lord of hosts With thunder and earthquake and great noise, With storm and tempest And the flame of devouring fire. (Isaiah 29:5-6)
The debt situation of the USA is putting it at risk of being unable to recover should it be hit by weather problems, terrorist acts, war, riots, solar flares, severe earthquakes, civil unrest, devastation of their genetically-modified food supplies, food shortages, and/or various pestilences–an intensity of “sorrows” such as Jesus discussed in Matthew 24:4-8 leading up to the time of the Great Tribulation. Disasters, especially if there is an ElectroMagnetic Pulse (emp) attack or a severe solar flare storm, could be part of a so-called “perfect storm” of events that could set the USA for destruction.
Many sorrows that the U.S.A. will face, like severe weather problems, diseases and earthquakes, will happen irrespective of who is in the White House (Amos 4:7-10; Luke 21:11) next year. Bible prophecy shows that the King of the North and King of the South will rise up and the U.S.A. will be ultimately destroyed unless national repentance happens.
Various policies and decisions in Washington, D.C., however, may hasten the day of destruction. The USA is creating the conditions for the upcoming European Beast power to fill the void in economic (and even military) leadership that the USA is in the process of making.
Making platinum coins is a nonsense way of pretending to pay off US debt.
The Bible shows that debt will be a factor in the destruction of the US.
Habakkuk 2:3,6,7 (which is consistent with other prophecies, such as Isaiah 29:5-6, 30:12-13 and Jeremiah 15:8), show that destruction will happen to those that increased their debt at the end times:
3 For the vision is yet for an appointed time; But at the end it will speak, and it will not lie. Though it tarries, wait for it; Because it will surely come, It will not tarry…5 Indeed, because he transgresses by wine, He is a proud man… 6 “Will not all these take up a proverb against him, And a taunting riddle against him, and say, ‘Woe to him who increases What is not his–how long? And to him who loads himself with many pledges’? 7 Will not your creditors rise up suddenly? Will they not awaken who oppress you? And you will become their booty. 8 Because you have plundered many nations, All the remnant of the people shall plunder you. Because of men’s blood And the violence of the land and the city, And of all who dwell in it. (Habakkuk 2:3,5,6-8).
The above shows that platinum coins will not be effective as those biblical prophecies will come to pass.
The US is the most indebted nation in the history of the world, continues to take steps that will increase that debt, and refuses to repent.
Yes, the end will come to the US, whether or not it makes trillion dollar platinum coins. The Kingdom of God, not coins, is the solution.
Some items of possibly related interest may include:
The End of US Dollar Dominance Is the USA losing its economic status? What about the petro-gold-yuan? A related video is also available: US Dollar being challenged by Gold-Petro-Yuan.
USA in Prophecy: The Strongest Fortresses Can you point to scriptures, like Daniel 11:39, that point to the USA in the 21st century? This article does. Two related sermon are available: Identifying the USA and its Destruction in Prophecy and Do these 7 prophesies point to the end of the USA?
Who is the King of the West? Why is there no Final End-Time King of the West in Bible Prophecy? Is the United States the King of the West? Here is a version in the Spanish language: ¿Quién es el Rey del Occidente? ¿Por qué no hay un Rey del Occidente en la profecía del tiempo del fin? A related sermon is also available: The Bible, the USA, and the King of the West.
Who is the King of the North? Is there one? Do biblical and Roman Catholic prophecies for the Great Monarch point to the same leader? Should he be followed? Who will be the King of the North discussed in Daniel 11? Is a nuclear attack prophesied to happen to the English-speaking peoples of the United States, Great Britain, Canada, Australia, and New Zealand? When do the 1335 days, 1290 days, and 1260 days (the time, times, and half a time) of Daniel 12 begin? When does the Bible show that economic collapse will affect the United States? In the Spanish language check out ¿Quién es el Rey del Norte? Here are links to two related videos: The King of the North is Alive: What to Look Out For and The Future King of the North.
The Great Monarch: Biblical and Catholic Prophecies Is the ‘Great Monarch’ of Catholic prophecies endorsed or condemned by the Bible? Two sermons of related interest are also available: Great Monarch: Messiah or False Christ? and Great Monarch in 50+ Beast Prophecies.
Anglo – America in Prophecy & the Lost Tribes of Israel Are the Americans, Canadians, English, Scottish, Welsh, Australians, Anglo-Saxon (non-Dutch) Southern Africans, and New Zealanders descendants of Joseph? Where are the lost ten-tribes of Israel? Who are the lost tribes of Israel? What will happen to Jerusalem and the Jews in Israel? Will God punish the U.S.A., Canada, United Kingdom, and other Anglo-Saxon nations? Why might God allow them to be punished first? Here is a link to the Spanish version of this article: Anglo-América & las Tribus Perdidas de Israel. Information is also in the YouTube sermons titled Where are the Ten Lost Tribes? Why does it matter? and British are the Covenant People. A short YouTube of prophetic interest may be: Are Chinese threats against Australia for real?
Will the Anglo-Saxon-Celtic Nations be Divided and Have People Taken as Slaves? Will the lands of the United States, United Kingdom, Canada, Australia, and New Zealand be divided? What about Jerusalem? What does Bible prophecy teach? Are there non-biblical prophecies that support this idea? Who will divide those lands? Who will end up with the lands and the people? Here is a link to a video titled Will the USA and other Anglo-nations be Divided and Their People Made Slaves? Here is a related item in the Spanish language ¿Serán divididas las naciones anglosajonas?
British are the Covenant People What do ‘British’ and ‘Britain’ mean in Hebrew? Are the descendants of the Anglo-Saxons people of the covenant? Does the British royal family connect to the throne of David? What does the Bible teach? What does history show us? Is there any DNA evidence related to British-Israelism? When did Christianity make it to the British Isles? Could Jeremiah have made it to the British Isles? What type of Christians made it to the British Isles? Did the last King of England believe in British Israelism?
Canada in Prophecy: What Does Bible Prophecy, Catholic Prophecy, and other Predictions Suggest About the Future of Canada? There are prophecies that suggest involvement with Canada. And many are not positive about its future. A sermon of related interest is also available: Canada in Prophecy.
Australia and New Zealand in Prophecy Do biblical prophecies help explain the wealth blessings for Australia and New Zealand? Might cursings from disobedience come in the 21st century? Here is a link to a related sermon: Australia and New Zealand: Origins and Prophecy.
Lost Tribes and Prophecies: What will happen to Australia, the British Isles, Canada, Europe, New Zealand and the United States of America? Where did those people come from? Can you totally rely on DNA? What about other peoples? Do you really know what will happen to Europe and the English-speaking peoples? What about Africa, Asia, South America, and the Islands? This free online book provides scriptural, scientific, historical references, and commentary to address those matters. Here are links to related sermons: Lost tribes, the Bible, and DNA; Lost tribes, prophecies, and identifications; 11 Tribes, 144,000, and Multitudes; Israel, Jeremiah, Tea Tephi, and British Royalty; Gentile European Beast; Royal Succession, Samaria, and Prophecies; Asia, Islands, Latin America, Africa, and Armageddon; When Will the End of the Age Come?; Rise of the Prophesied King of the North, and Christian Persecution from the Beast.
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