USA to Make One Trillion Dollar Platinum Coin? 75 Lakh Crore

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THE DEAL WITH THE DEBT CEILING

The debt ceiling places a fixed limit on the total amount of money the Treasury Department can borrow in order to fund government activities, and Congress has to vote to either raise or suspend that limit from time to time as the federal debt grows ever larger.

WHAT IS THE $1 TRILLION COIN?

The idea is that the president could order the treasury secretary to mint a $1 trillion coin out of platinum, then deposit it with Federal Reserve. Then, just like that, the government would have an additional $1 trillion to pay off its obligations. The debt ceiling is no longer an issue.

WHY PLATINUM?

The Treasury is limited by law on how much paper money and gold, silver, and copper coins it can circulate at once. But there’s no limit on how
many platinum coins it can circulate, or on their value.

WHAT’S THE DOWNSIDE TO THE $1 TRILLION COIN?

A major concern for economists is hyperinflation. Minting the $1 trillion coin would be like creating money out of thin air. When all that new money poofs into existence, the other currency in circulation becomes less valuable. That could hurt consumers, who are already dealing with price inflation.

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