Trillion Dollar Coin: Good or Bad Debt Ceiling Fix? - Real Time Insight
January 09 2013 - 7:01AM
Zacks
With the debt ceiling fast approaching and both sides digging
in, many are looking for a quick fix to the problem. One possible
solution that has been floated lately is the ‘trillion dollar coin’
idea.
Apparently, the U.S. Treasury is allowed to mint as many coins
of platinum as it so desires and it can also assign them any value
it chooses. With this loophole, the Treasury could print up a
couple trillion dollar platinum coins, deposits them at the Federal
Reserve, and then the Fed moves it into the Treasury’s accounts,
pretty much eliminating a debt ceiling fight altogether.
While this would ‘solve’ the problem, it would also likely
infuriate Republicans who more or less caved on the Fiscal Cliff
and were looking to extract something out of Democrats this time
around. This could set up an even more partisan stretch over the
next few years, assuming that this is the route that Obama
takes.
What do you think about the idea?
Is this a good way to fix the debt ceiling debacle despite the
political risks? Or is this a slimy way to avoid another political
fight?
Let us know what you think in the comments below!
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30
Days. Click to get this free report >>
IPATH-DJ-A PLAT (PGM): ETF Research Reports
ETFS-PLATINUM (PPLT): ETF Research Reports
E-TRC UBS LG PL (PTM): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
E-Tracs Usb Bloomberg Commodity Index Exchange Traded Notes E-Tracs Ubs Bloomberg Cmci Platinum Etn (delisted) (AMEX:PTM)
Historical Stock Chart
From Aug 2024 to Sep 2024
E-Tracs Usb Bloomberg Commodity Index Exchange Traded Notes E-Tracs Ubs Bloomberg Cmci Platinum Etn (delisted) (AMEX:PTM)
Historical Stock Chart
From Sep 2023 to Sep 2024