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$1 Trillion Coin – as Phony as a Three-Dollar Bill

January 12, 2013

White House won’t rule out $1 trillion coin.

The Constitution vests control over the purse – spending – as well as over the public credit and the coining of money with Congress.  There is no ‘loophole‘ allowing the Treasury to mint a coin with a Zimbabwe-esque denomination.  When we, as citizens, decide how we are to pay for $16,000,000,000,000 in national debt, in addition to perhaps $100,000,000,000,000 promises made for Social Security, Medicare, Medicaid, veterans’ benefits and the like, we may debate whether to pursue austerity to reduce current consumption, as many households do when faced with a budget crunch, or we may opt to support higher taxes to fund our expenses, but he cannot, as serious adults, spend time talking about magic money being used to pay for actual debts owed and promised made.  In more mature political societies, discussions like this would not take place.

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