Pragmatic Capitalism

Practical Views on Money & Finance

There’s That Trillion Dollar Coin Again….

Monetary Realism’s in-house counsel, Beowulf (aka, Carlos Mucha) originated the idea of overcoming the debt ceiling by minting a trillion dollar coin.  So it’s nice to see the idea getting some attention (see here).   Anyhow, the US Treasury has the legal authority to instruct the US Mint to create a coin of any denomination and simply deliver it to be deposited in the US Treasury account at the Federal Reserve.

It sounds rather silly of course.  But it highlights how ridiculous the whole debt ceiling debate is to begin with.  After all, the debt ceiling is only reached because Congress ALREADY voted to spend the money that would cause us to get there.  The whole debt ceiling debate is mindbogglingly silly.  The same politicians who use it to hold the US economy hostage passed the bills that got us here in the first place.  It’s like eating a dozen cheese pizzas, tying a knot in your intestine and then threatening your stomach not to digest the food because it might kill you.  Yes, that would be stupid because it is.

Got a comment or question? Feel free to contact Cullen via email here or on Twitter here.
Cullen Roche

Cullen Roche

Mr. Roche is the Founder of Orcam Financial Group, LLC. Orcam is a financial services firm offering asset management, private advisory, institutional consulting and educational services. He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance and Understanding the Modern Monetary System.

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