

This Is How the Trillion Dollar Coin Could End Debt Ceiling Fights for Good
Oct 4, 2021
Rohan Grey, an assistant professor of law at Willamette University and a leading expert on the trillion-dollar coin, dives into the peculiar legal pathways that could resolve U.S. debt ceiling crises. He explores the remarkable idea of minting a platinum coin to circumvent contentious political battles over the debt limit. The discussion highlights the historical context of debt ceiling conflicts and the potential for creative reinterpretation of existing monetary laws. Grey critiques the current fiscal norms while shedding light on public skepticism and the broader implications for economic policy.
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Debt Ceiling and the Coin
- The debt ceiling is a recurring political battleground in the US, creating economic instability.
- Minting a trillion-dollar coin offers a way to bypass this political wrangling.
Legal Basis of the Coin
- The Coinage Act allows the Treasury to mint platinum coins of any denomination.
- This authority, while intended for collectible coins, could be used to bypass the debt ceiling.
Origin of the Coin Idea
- The trillion-dollar coin idea originated during the 2010-2011 debt ceiling crisis.
- It started as a thought experiment and a way to highlight the absurdity of self-imposed debt limits.