The Trillion Dollar Coin
The new debate to solve the debt ceiling issue in the United States is regarding minting a trillion dollar platinum coin and deposit it at the Federal Reserve in order to offset its 16.4 trillion dollar debt.
Ridiculous! How is this possible to create money out of thin air?
The Commemorative Coin Authorization and Reform Act of 1995 allow the government to issue a platinum coin in any denomination it chooses. The law says the Treasury secretary may “mint and issue platinum coins in such quantity and of such variety as the secretary determines to be appropriate.”
According to a report released yesterday, the U.S. Treasury will run out of funds to pay its bills between February 15 - March 1 of this year.
What is the debt ceiling?
The debt ceiling is the amount the government can borrow to meet obligations that were authorized in the past by Congresses and Presidents.
The way the United States is tumbling along-Hyper Inflation is inevitable!
Interesting Fact: The last time that the ceiling debate was occurring, gold and silver reached their record highs. Watch the markets as these talks progress.
