‘The Trillion Dollar Coin: A Dumb Idea That Some Government People Take Seriously’
Platinum USA $100 Coin
With the official US government debt now over $35 trillion, we are once again hearing discussion of a trillion dollar coin as the solution. Notice the following:
The Trillion Dollar Coin: A Dumb Idea That Some Government People Take Seriously
August 10, 2024
The idea is pretty simple. The U.S. Treasury could mint a $1 trillion platinum coin, deposit it at the Federal Reserve, and then the federal government could write checks against that asset.
Voila! Budget problem solved.
Now, it may sound a little bit like creating money out of thin air.
That’s because it is. But hey, if it’s legal, why not?
I’ll be honest; when people were discussing the trillion-dollar coin during the 2023 debt ceiling fight, I thought it was just an attention-grabbing political gimmick. Even Janet Yellen eventually nixed the idea. Surely nobody seriously considered such a scheme, right?
Wrong.
Documents obtained by Bloomberg investigative journalist Jason Leopold reveal that government officials discussed the feasibility of minting a trillion-dollar coin on at least two occasions in 2013 and 2015.
According to a heavily redacted November 2013 memo, Treasury Department officials and Department of Justice lawyers discussed the legality of issuing a “large denomination coin in order to obtain funds for making debt payments and other expenditures if Congress fails to raise the debt ceiling.”
A second memo dated Oct. 27, 2015, reveals another round of discussions about the legality of such a scheme.
It seems to me they should probably consider the economic ramifications before fretting over legal minutia, but that’s just me.
Yale professor Jack Balkin promoted the $1 trillion coin scheme back in 2011. Here’s how it would work:
“Sovereign governments such as the United States can print new money. However, there’s a statutory limit to the amount of paper currency that can be in circulation at any one time.
“Ironically, there’s no similar limit on the amount of coinage. A little-known statute gives the secretary of the Treasury the authority to issue platinum coins in any denomination. So some commentators have suggested that the Treasury create two $1 trillion coins, deposit them in its account in the Federal Reserve and write checks on the proceeds…
“The ‘jumbo coin’ [strategy works] because modern central banks don’t have to print bills or float debt to create new money; they just add money to their customers’ checking accounts.”
In effect, it would be no different than the quantitative easing operations (QE) the Federal Reserve currently runs to expand the money supply.
In a QE operation, the Federal Reserve buys securities (primarily U.S. Treasuries and mortgage-backed securities). The catch is the money to buy these assets doesn’t exist until the Fed “writes a check” for the purchase. Imagine your bank honoring a check you wrote even though your balance was zero. That’s QE in a nutshell. The central bank creates the money out of thin air and injects it into the economy.
The trillion-dollar coin scheme would have the same practical effect as QE, but the government would be off the hook from having to pay off bonds on the Fed balance sheet. Instead of having to borrow money by issuing bonds for the Fed to later monetize, the government would just create the money itself bypassing the Fed middleman.
So, what’s the problem?
Well, we just saw what happens when the Fed creates money out of thin air. During the pandemic, the central bank created nearly $5 trillion through quantitative easing. After that, prices went through the roof. This was inevitable because money creation is, by definition, inflation. One of the consequences of monetary inflation is price inflation.
Minting a trillion-dollar coin would have a similar effect. https://www.zerohedge.com/economics/trillion-dollar-coin-dumb-idea-some-government-people-take-seriously
Having such a coin pay off the debt would also be highly offensive to foreign creditors.
The USA should cut government spending to pay down the debt. But that is not the plan.
Yet, unless the debt is lowered, interest costs will become more and more significant.
Since cutting the debt through legitimate mean, the idea of pretending to do so has gained some supporters from time to time.
Here is something last year on that from the Financial Times:
The Fed will have to accept the $1tn platinum coin
18 January 2023
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. 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 for a while. 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.
Related to US debt, we put out the following video:
And the Debt Goes On …
On June 3, 2023, US President Joe Biden signed a bill to increase the official debt-ceiling of the United States. According to the US Treasury the “ceiling” has been changed, increased, or delayed 78 other times. The official debt has nearly tripled since the Obama-Biden Administration. The official debt increased about $2 trillion per year under Donald Trump’s Administration and has done close to that in the Joe Biden Administration. While the USA has been able to increase debt with limited consequences (like inflation) so far, does the Bible show this can end in destruction? What did God warn about debt through the prophet Habakkuk? Is getting into high amounts of debt a blessing or curse according to the Bible? Do Democrats or Republicans currently have a plan that will now be implemented to pay off the debt? Has the USA been functioning as an international “leech” consistent with statements in the Book of Proverbs? Does the Bible say it is wicked to borrow money you do really intend to repay? Steve Dupuie and Dr. Thiel cover these matters.
Here is a link to our video: And the Debt Goes On …
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.
 |
Tweet |
|