The US government is seriously considering minting a trillion-dollar platinum coin as a way to avoid a debt default. This crazy idea, which has been floating around for years, could give the US government a huge cash injection without having to borrow more money.
Government Documents Reveal Secret Discussions
Newly released government documents confirm that high-level legal discussions about the coin have been happening for years. These documents, obtained through Freedom of Information Act requests, reveal internal legal discussions from 2013, 2015, 2021, and 2023.
The documents show that the Office of Legal Counsel (OLC) has been debating the legal authority to mint the coin. Different opinions on how to handle the debt ceiling have emerged over the years.
What’s in the Documents?
- A 2013 document titled “Authority of the Secretary of the Treasury to Issue a Large Denomination Platinum Coin” contains preliminary research and conclusions that are still secret.
- A 2015 document summarizing advice given to Treasury officials on debt ceiling strategies is heavily redacted, but it shows that advice was given around the time the trillion-dollar coin idea resurfaced in the news.
- A cover sheet from a 2021 memo, dated May 16th, 2023, includes 26 pages of research on the debt limit. It mentions “evolving” legal thinking on the issue, but most details are redacted.
More Questions Than Answers
The released documents raise more questions than answers. We still don’t know if the OLC believes the Treasury has the legal authority to mint platinum coins or if the president can use the 14th Amendment to bypass Congress on raising the debt ceiling.
The government’s serious consideration of this unusual solution to the debt ceiling problem is definitely something to watch.
