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History of the Proof Platinum Coin Seigniorage Concept, 2010-2013

Please leave new "sightings" of Proof Platinum Coin Seigniorage items -- whether old or new -- in comments below, or contact the blog!

And see here for an interpretation of the data, at least from the perspective of the blogosphere.

 

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Displaying 451 - 552 of 552 entries
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Author: Publication Datesort descending Text
Atrios: Eschaton 01/13/13

"I really hope this is just the Treasury and Fed giving each other cover (that's not awesome either) rather than the Fed deciding it has the authority to determine which bits of legal tender the Treasury can and can't deposit into its account." (original).

peterc: heteconomist.com 01/13/13

"The key point is that certain elementary truths usually reserved for our good selves have penetrated the dull consciousness of a small minority of the 99 Percent. This process was most recently aided by the platinum coin saga (h/t to Tom Hickey for the link), which, if it had been allowed to proceed unimpeded, would have exposed to more of the 99 Percent the existence of these simple truths, some of which are not even comprehended by the dimmer members of our own, uppermost percentile. Fortunately, our president is on the same side as the Treasury, Fed, and GOP on this issue. Our side" (original).

Joe Weisenthal: Business Insider 01/13/13

"[I]t seems odd that the Fed would decide that there's some legal tender that it will recognize, and some legal tender that it wouldn't recognize. Furthermore, by placing the blame on the Fed, it would seem that the White House/Treasury wanted to keep this idea available as a last-second escape valve in case things were about to get that bad" (original).

Philip Diehl: Monetary Realism (comment) 01/13/13

"I’ve spent time in the South African bush among wild lions. My guides explained that lions perceive the world through gestalts , very different from how we perceive the world. A group of people in an open Range Rover can enter into a hunting party of lions, including mothers with their cubs, with impunity because the lions perceive them in terms of the familiar sound, smell, and sight of you-in-Range Rover, neither a threat nor an opportunity for an easy meal.

I’ve been surrounded by a pride of 20+ lions, all within 10 to 30 ft., lounging about, taking a siesta during a hunt. Even as they looked directly into our eyes they remained indifferent. But if I were to stand up, I would become a human, as though teleported, standing on top of the Range Rover gestalt and instantaneously in danger.

I suspect this is what happens when a lion “tamer” raises a chair. The chair creates a different gestalt that disrupts, erases or intervenes in the gestalt of the human and interrupts the feast, flight or fight instinct it triggers.

Obviously, a chair is a poor defense against a lion, so something deeper than mere distraction is going on here. I’m told 90% (or so) of all charges are false charges designed to intimidate. If you can manage to hold your ground, despite immediately vacating all liquid in your body, the lion stops her charge.

Sort of like the House GOP.

But then there’s that other 10% of the time. That’s why Obama should have kept the TDC in his back pocket." (original).

Andy Borowitz: The New Yorker 01/13/13

"(The Borowitz Report)—President Barack Obama was “totally furious” he spent a week of his time posing for a trillion-dollar platinum coin that would never be minted, a White House source confirmed today"" (original).

Abram Brown: Forbes 01/13/13

"The coin thing sounded great, though, right? Well, it sounded a bit far-fetched…even more so when you consider that fiscal theorem originated in Los Angeles, not Washington D.C. It is, in fact, ripped right from the halcyon days of the late 1990s—when Butterfinger BB’s still existed, and The Simpsons was in its ninth season. In that stretch of episodes, there was one called The Trouble With Trillions, an amusing romp that alluded to Stark Trek and included Fidel Castro" (original).

Devin Smith: New Economic Perspectives 01/13/13

"Did you feel it? The earth moved under our feet a little bit over the past week. I’m feeling quite grateful to beowolf and Joe Firestone and everyone else who laid the foundation for Mint The Coin, and to Stephanie Kelton (for creating) and Joe Weisenthal (for popularizing) the #MintTheCoin hashtag and circulating the White House petition" (original).

Beowulf: New York Times 01/13/13

"[I]n 1996 something remarkable happened. Over the objections of a Democratic administration Republicans in Congress passed a statue, 31 USC 5112(k), permitting the issuance of platinum numismatic coins. The astonishing part was that Congress set no specific denomination, writing perhaps the biggest blank check in history.

Since the Federal Reserve buys coins at face value, this gave the Secretary of the Treasury the power to create debt-free money at will.

To create this debt free money, the Secretary of Treasury must instruct the mint to produce a platinum numismastic coin with, say, a $1 trillion denomination. This coin can then be deposited at the Federal Reserve, and the Fed will credit the account of the U.S. government for the face value of the coin. (original). Part of a Times "Room for Debate" series.

Jonathan Cohn: The New Republic 01/13/13

"[H]aving foresworn the coin option, the administration puts even more pressure on itself to prevail in a standoff with the Republicans. Obama says he won’t negotiate over the debt ceiling. But, come February, he (or his allies in Congress) will be be negotiating with Republicans over two other fiscal issues, the automatic spending cuts of the “sequester” and the need for a new spending bill to keep the government operating. Republicans are sure to bring up the debt ceiling in these discussions. Treating it as a distinct matter, off-limits for negotiating, will be difficult" (original).

Kevin Drum: Mother Jones 01/13/13

"Fighting banana republic with more banana republic is far more dangerous than coin supporters think. It's one thing for Republicans to go crazy. It's another for craziness to essentially become institutionalized. When liberals stop fighting this kind of stuff, we really are on our way to banana republic-hood" (original).

Michael: The Economic Collapse 01/13/13

"[T]here is one organization that is considered to be so sacred in Washington D.C. that Obama will not dare utter a single negative word against it. That organization is the Federal Reserve. ... (original).

Maya MacGuineas: New York Times 01/13/13

"We could use various money-minting gimmicks or legal maneuvers to avoid the ceiling, while avoiding the reality that the ceiling is a reminder that we are borrowing way too much. Rather than heeding all the warning signs, Congress and the president would prefer to find new and creative ways to kick the can down the road. At some point, this punting will cause tremendous damage" (original). Part of a Times "Room for Debate" series.

Jonathan Cohn: The New Republic 01/13/13

"[H]aving foresworn the coin option, the administration puts even more pressure on itself to prevail in a standoff with the Republicans. Obama says he won’t negotiate over the debt ceiling. But, come February, he (or his allies in Congress) will be be negotiating with Republicans over two other fiscal issues, the automatic spending cuts of the “sequester” and the need for a new spending bill to keep the government operating. Republicans are sure to bring up the debt ceiling in these discussions. Treating it as a distinct matter, off-limits for negotiating, will be difficult" (original).

Lawrence Tribe: New York Times 01/13/13

"Apart from the technically legal but wildly unrealistic device of minting a trillion-dollar platinum coin, prioritization is the approach that does the least violence to the Constitution.

But this approach, too, would be a disaster in practice. Stopping government employees’ pay, retirees’ Social Security checks or seniors’ Medicare reimbursements would bring chaos to the lives of millions of Americans – and would be catastrophic for our recovering economy.

The inadequacy of each of these alternatives highlights a truth I pointed out during the last debt-ceiling crisis: we cannot find solutions to all of society’s problems in the Constitution. Here, we must find them in political courage, in compromise and in a congressional willingness to fulfill its unique constitutional duties. Nothing else will avert the impending crisis. (original). Part of a Times "Room for Debate" series.

Dan Kervic: New Economic Perspectives 01/13/13

"The coin debate triggered something. The platinum coin is a big shiny, reminder that in some way, somehow, the monetary authority of the United States rests with the American people, even if the plutocratic architects of our financial system and the owners of our country have succeeded over time in burying that authority under many layers of convoluted technocracy and confusing delegations" (original).

Steve Waldman: Interfluidity 01/13/13

"Tim Duy has a great review of why platinum coin seigniorage was a bridge too far for Treasury and the Fed. I think he’s pretty much spot on.

However, with Greg Ip (whose objection Duy cites), I’d take issue with the following:

Ultimately, I don’t believe deficit spending should be directly monetized as I believe that Paul Krugman is correct — at some point in the future, the US economy will hopefully exit the zero bound, and at that point cash and government debt will not longer be perfect substitutes.

Note that there are two distinct claims here, both of which are questionable" (original).

Yashwant Raj: Hindustan Times 01/13/13

"Imagine being able to mint a coin or print notes to take care of all your debts. Most of us cannot. A government can. And the US government should, many suggested. But it will not. The administration on Saturday squelched all speculation that it will mint a $ 1 trillion platinum coin to get around the debt ceiling and doggedly uncooperative Republicans" (original).

ataxingmatter 01/13/13

"What about the "trillion dollar platinum coin" idea?  This is the law that grants the executive the right to mint platinum coins of any denomination.  Why not mint a few that add up to a trillion, and then pay it to the Fed and draw cash from the Fed based on that coin, to pay our bills?  That is perfectly legal--Congress did not limit the use of the coins in the legislation authorizing them.  If Congress can play brinksmanship games by threatening to put the US in default and destroy our economy unless the majority enacts the pet legislation of the minority to destroy the Social Security, Medicaid, and Medicare safety net programs, then the Executive should be willing to use every tool at his disposal to prevent that.  Of course, Treasury today said it wouldn't do that.  See Anne Lowrey, Treasury Won't Mint Coin to Defy Debt Ceiling, New York Times (Jan. 12, 2013).   Stupid of them to do so, since it is clearly within the law.  Obama cannot "wimp out" on this debt ceiling issue (to use Krugman's term):  if he lets the  zanies in the GOP use these tactics to force changes in the safety net programs, he will have destroyed the Democratic party and the recovery from the Grand Recession in one fell swoop" (original).

Matthew Yglesias: Slate 01/13/13

"All that said, I'm glad we had this conversation. Direct discussion of the platinum coin was a good reminder that many people, including influential media figures, appear to have no idea what money is or how the monetary system works. Apart from the shockingly widespread view that the value of coins is determined by their metallic content, there was a lot of insistence that creating money was somehow an act of 'magic.' In fact, the way all legal currency is created is that a government agency creates the money. Typically that's the Federal Reserve accommodating bank demand for base money. But all kinds of things can happen. Forget 'Quantitative Easing.' When the Fed does the thing that reporters call "raising interest rates" it doesn't pull an interest rate lever. It sells bonds on the open market in exchange for money. And when that money enters the Fed, it vanishes. When they "lower interest rates" they buy bonds on the open market in exchange for money. Where do they get the money? From nowhere. They just make it. That's money. Whether the electronic process of attributing more or less money to an account is accompanied by a little piece of platinum or not is wholly irrelevant" (original).

Tim Carmody: The Verge 01/13/13

"It seems the Obama administration wants to leave responsibility for scoring political points through convoluted technical maneuvers to Congress" (original).

Ron Rimkus: Enterprising Investor 01/13/13

"[A]trillion dollar platinum coin is an idea hatched to sidestep a number of existing laws which either limit the ability of the government to create new gold and silver coins or limits the ability of the US Treasury to issue debt" (original).

Johnsville News 01/13/13

"The Obama administration apparently has some other "Plan B" in the works. Could it be the use of IOU's or coupons to pay the bills? Or by discarding the ace up his sleeve, actually the magic coin in his pocket, this quickly has the President decided to simply stake out the moral high ground? No monkey business with the money, no currency hacking, just stand firm, be the grown-up and expect Congress to do the same, and put on their big boy pants and pay their bills. So, the soft currency crusaders have been repelled at the walls of the U.S. Treasury" (original).

Daniel Politi: Slate 01/13/13

"Still, several Democrats had already rejected the idea of a coin on purely political grounds: For a nation so concerned with the deficit would there be a better symbol of out-of-control spending than a $1 trillion coin? Now the Treasury Department has said it won’t mint the coin to prevent a government default, effectively killing the idea for good" (original).

Luca Gattoni-Celli: American Spectator 01/13/13

"The Epic Tale of Beowulf and the Platinum Coin Come to think of it, wasn’t that the same thing Keynes said? “The General Theory of Employment, Interest and Money started as a silly question in a pointless bull session. I’m just in it for the lulz." (original).

Quartz 01/13/13

"So it wasn't just a joke? The US Treasury and Federal Reserve say they are not creating $1 trillion by minting platinum coins. The idea actually gained some currency among Democrats in recent days as a way of sidestepping congressional Republicans who threaten to reject a necessary increase in the debt ceiling unless deep spending cuts are made. Now they're all back to the drawing board." (original).

Stephanie Kirchgaessner: Financial Times 01/13/13

"One day after Democratic leaders in the Senate urged Barack Obama, the US president, to sidestep Congress if necessary and use any legal mechanism to increase the debt limit, the Treasury released a rare Saturday statement explicitly ruling out creating a $1tn coin to avoid a possible crisis" (original).

The Daily Republic 01/13/13

"U.S. Rep. Kristi Noem , R-S.D., announced Thursday that she will co-sponsor the Stop the Coin Act which she said would prevent the U.S. Treasury from minting a platinum coin that could be used to pay the federal government’s bills.

“'o think that some in Washington believe that minting a trillion dollar coin can solve our nation’s out-of-control spending is embarrassing,' Noem said in a written statement." (original).

Dan Kervic: New Economic Perspectives 01/13/13

" The coin debate triggered something. The platinum coin is a big shiny, reminder that in some way, somehow, the monetary authority of the United States rests with the American people, even if the plutocratic architects of our financial system and the owners of our country have succeeded over time in burying that authority under many layers of convoluted technocracy and confusing delegations" (original).

Zeke Miller: Buzzfeed 01/13/13

"But it was the Federal Reserve that killed the proposal, the official told BuzzFeed, denying a purely political rationale for the announcement, saying the independent central bank would not have credited the Treasury's accounts for the vast sum for depositing the coin" (original).

James Flaherty: Wall Street Cheat Sheet 01/13/13

"A platinum coin is one of the many strategies Democrats are exhausting to avoid heading to the negotiation table with Republicans; there are also reports that top Democratic senators request that Obama use his presidential power to extend the debt ceiling, invoking the 14th amendment which states that the U.S. debt “shall not be questioned" (original).

Bruce Krasting: Zero Hedge 01/13/13

"I think Bernanke got some calls from other Central Banks. They told him it would be a dangerous precedent for America to do this. If there are coins to be printed, it would be better if some other country (possibly Japan) do it first. After all, the dollar is still the #1 reserve currency. The foreign CBs have some say in this." (original).

Selise: emptywheel (comment) 01/13/13

"[C]an we now agree that indeed there is evidence Congress intended it [seigniorage] be allowed to substitute for authorized debt and that it [seigniorage] has been used historically for that purpose?" (original).

Paul Krugman: Conscience of a Liberal 01/13/13

"[W}hat went wrong here is a lack of professionalism on the part of Stewart and his staff. Yes, it’s a comedy show — but the jokes are supposed to be (and usually are) knowing jokes, which are funny and powerful precisely because the Daily Show people have done their homework and understand the real issues better than the alleged leaders spouting nonsense. In this case, however, it’s obvious that nobody at TDS spent even a few minutes researching the topic. It was just yuk-yuk-yuk they’re talking about a trillion-dollar con hahaha. Hey, if we want this kind of intellectual laziness, we can just tune in to Fox" (original).

Ian Katz: Bloomberg 01/13/13

"The U.S. Treasury Department and Federal Reserve oppose the idea of minting platinum coins as a way to avoid the U.S. debt ceiling, according to a statement from Treasury spokesman Anthony Coley" (original).

Jake Berry: Nashua Telegraph 01/13/13

"There are no formal counts of platinum production before 1975, but based on recent records and historical accounts, there is no evidence to suggest the value of the world’s total platinum supply comes within reach of the national debt" (original).

chicagopriide.com 01/13/13

"The Simspons' trillion dollar "Truman Bill" was an absurd solution to an absurd fictional problem. The trillion dollar platinum coin, on the other hand, is an absurd solution to an equally absurd, very real problem. That's the point.


But if we're gonna mint the coin, we might as well put the right guy's face on it: Ronald Reagan." (original).

Fox News 01/13/13

"The Obama administration ended speculation Saturday that it would mint a trillion-dollar platinum coin as a way to avoid the debt ceiling. The idea of minting such a coin to invalidate the debt ceiling purportedly comes from part of the 1997 Omnibus Consolidated Appropriations Act. The words were written by then-Delaware Republican Rep. Mike Castle, who purportedly is a coin collector" (original).

Annie Lowrey: New York Times 01/13/13

"The idea of minting a trillion-dollar coin drew wide if puzzling attention recently after some bloggers and economic commentators had suggested it as an alternative to involving Congress. ... The Washington Post earlier published a report that the Obama administration had rejected the platinum-coin idea. " (original).

Paul Krugman: Conscience of a Liberal 01/13/13

"Meanwhile, I get calls. The White House insists that it is absolutely, positively not going to cave or indeed even negotiate over the debt ceiling — that it rejected the coin option as a gesture of strength, as a way to put the onus for avoiding default entirely on the GOP" (original).

Terrrance Heath: Bilerico Report 01/13/13

"If the White House decides to mint the coin, the Treasury should put Reagan’s picture on it. And if I were president Obama, just for fun I’d drill a hole through it, put it on a chain, and wear it around my neck at the next State of the Union. And that’s reasons 1,345,839 why I’ll probably never be president" (original).

Ian Katz: BusinessWeek 01/13/13

"'Neither the Treasury Department nor the Federal Reserve believes that the law can or should be used to facilitate the production of platinum coins for the purpose of avoiding an increase in the debt limit,' [Treasury spokesman Anthony] Coley said in an e-mailed statement yesterday" (original).

Sahil Kapur: Talking Points Memo 01/13/13

"In a web exclusive with ABC News Sunday, Paul Krugman went after Jon Stewart over the comedian's derisive coverage of the idea of minting a platinum coin to avoid a credit default" (original).

Kaye Foley: ABC 01/13/13

"'It is a funny thing. But you want to be funny from a point of view of understanding what the issues are. There’s a reason we’ve gotten to this place,” Krugman said of Stewart’s 'Daily Show' coverage of the platinum coin issue, which Krugman criticized as 'intellectual laziness' in a recent blog post. 'Obviously neither he nor his staff did even five minutes of looking at the financial blogs. Lots of people think it’s a bad idea. Lots of people think it’s a good idea. But it’s not just, Oh, those idiots.'" (original).

Karl Denninger: Market Ticker 01/13/13

"That's because the law provides for this as a commemorative coin issue, not a monetary instrument.  Current law has a statutory cap on the amount of monetary metallic coinage the Treasury can issue, and it's tiny.  It would be blatantly illegal to attempt to circumvent that law in this fashion, and the appropriate response from The House to such an attempt (or, for that matter, trying to invoke the 14th Amendment) would be immediate impeachment and refusal to consider all other legislation until Obama was removed from office" (original).

Matthew O'Brien: The Atlantic 01/14/13

"This was probably the least surprising development in the history of developments. It wasn't just that the trillion-dollar coin would have been a political liability because it sounds silly -- that was the best, and only, argument against it -- but rather that it required the Fed to give up its sole control of monetary policy. The Fed would not do that" (original).

Dorothy Kosich: MineWeb 01/14/13

"The U.S. Treasury Department and the Federal Reserve both oppose the idea of minting a trillion-dollar platinum coin to overcome the U.S. debt ceiling" (original).

Mike Konczal (Rortybomb): Seeking Alpha 01/14/13

"The administration decided against negotiating with the GOP over potential terms for raising the debt ceiling, even though they could have tried for the Grand Bargain they've been trying to get for the past several years. They've asked for a clean increase of the debt limit instead, threatening default. They've also now decided to commit to not sidestepping around the debt ceiling using legal measures, either by minting the platinum coin or declaring the debt ceiling unconstitutional via the 14th amendment" (original).

Larry Elkin: Wall Street Pit 01/14/13

"The idea is ridiculous only in its extremity. Since the days of King Croesus of Lydia, who minted the first standardized gold coins in the sixth century B.C., every sovereign has ensured that the face value of each monetary coin is greater than the value of the metal required to make it. This policy is essential because, if the coin is worth more than face value when melted down, the society ends up with a lot of melted metal and no currency in circulation. Such a policy is also profitable for the sovereign, because the government acquires goods and services at the coin’s face value, even though it costs less than that to manufacture. This form of arbitrage is called 'seignorage.'" (original).

Evan Soltas: Bloomberg 01/14/13

"[T]he platinum-coin debate, for all its absurdity, was in fact packed with the basic principles of monetary economics. Here are five lessons that the trillion-dollar coin should teach us about how money really works: (original).

Ted Gayer: US News 01/14/13

"But this was still a very bad idea, and Treasury was right to rule it out as an option. It would have involved the Fed in direct, off-market, financing of the government, compromising its independence. It would have relied on a loophole in a law designed to allow Treasury to issue coins of any denomination for commemorative purposes. It may or may not have held up in court, but it likely would have been challenged, creating legal uncertainty and perhaps even a Constitutional crisis if Congress challenged what would have been, in effect, the President’s usurping control of monetary policy. The result would have been market turmoil, broad economic harm, and evidence to the world of our inability to govern ourselves" (original).

Rob Quinn: Newser 01/14/13

"The $1 trillion platinum coin being touted as a bizarre solution to the debt ceiling debate will only ever exist as an illustration of just how dysfunctional Washington has become" (original).

MNI News (Germany) 01/14/13

"Treasury Secretary Tim Geithner, who leaves office Jan. 25, has not personally addressed the coin proposal. However he showed in May 2009 that he is not unfamiliar with large denominations, showing the House Appropriations Committee a hyperinflated $50 billion Zimbabwe bank note he carries in his wallet. Geithner lived in Zimbabwe for a time growing up" (original).

Marc Thiessen: Washington Post 01/14/13

"In a town that specializes in stupid ideas, this one reached a new level of stupid. Think about it: If the president could really create a trillion dollars out of the ether simply by minting a single $1 trillion coin, why would we stop at one? We could mint 17 of these puppies and eliminate the national debt! Heck, we could mint 18 and have a trillion-dollar surplus!" (original).

Joe Weisenthal: Business Insider 01/14/13

"Rep. Nadler:But the coin is so clearly legal, so clearly does the job, I don’t understand why they took it off the table, I don’t understand where they are at this point. As I said, I don’t know what actions there are at this point, other than they should have Wall St., big business gets the Republicans backing down" (original).

Newsday (Zimbabwe) 01/14/13

"The United States Treasury Department said on Saturday it will not produce platinum coins as a way of generating $1 trillion in revenue and avoiding a battle in Congress over raising the US debt ceiling" [lead-in to Reuters story] (original).

Marc Ambinder: The Week 01/14/13

"Reports suggest the Federal reserve offered some technical reservations when asked about the idea, and the Treasury Department then concluded that it did not have the authority to actually mint the coin. Maybe.

The real reason the administration probably wouldn't employ the coin even if they really believed they could lies in the debate between Paul Krugman and Jon Stewart. It's not the details of the debate. It's the debate itself. Krugman thinks it can and ought to be done. Stewart ridiculed it because it sounds ridiculous. (Krugman responded; Stewart responded to the response.) The satirist's initial instinct was visceral. A coin? Really? It sounds too good to be true.

The moment the administration embraces the idea of a coin is the moment that the coin becomes the lead story on newscasts. The optics of the debate would flip, and the onus would be on the administration to explain how minting a coin isn't as absurd as it sounds and isn't a gimmick and really would work. ' (original).

Phil Kerpen: US News 01/14/13

"So the scheme as proposed would actually require both fraud and a conspiracy with the Federal Reserve to accept an essentially counterfeit coin at face value. But it is unclear who might have standing to legally challenge the scheme, and it has somehow seemed to have passed the laugh test and entered the realm of political feasibility" (original).

Harry Banks: City A.M. 01/14/13

"The novel idea [of the platinum coin] was taken seriously after big-spending economists and commentators like Paul Krugman pushed for it to be considered. But the government declined to use such a creative approach to the debt limit" (original).

Peter Weber: The Week 01/14/13

"Now the onus rests with GOP leaders to keep us from economic chaos. If they fail, America will know who to blame." (original).

David John: US News 01/14/13

"The coin gambit reflects magical thinking and the worst type of Washington sophistry. Rather than dealing with a serious and growing problem, the coin idea is an attempt to find a cute gimmick that sidesteps it. The United States is rapidly spending itself into insolvency" (original).

Jason Van Steenwyk: Nerdwallet 01/14/13

"With platinum’s spot price around $1,592 per ounce, a $1 trillion dollar platinum coin with that actual amount of platinum in it would weigh nearly 20 tons" (original).

Dean Baker: US News 01/14/13

"Childish admonitions about spending within our means are not a substitute for serious thinking about the economy. A joke $1 trillion platinum coin is an appropriate response to "leaders" who want to play games making up scare stories about deficits and debt" (original).

Warren Mosler: The Center of the Universe 01/14/13

"Platinum Coin Idea Is Rejected by White House. This is far more problematic than markets realize. The President had a choice. The debt ceiling thing expresses ‘the will of Congress’ where Congress makes laws for the executive branch to execute. The President has also sworn to uphold the Constitution which says the President has to pay the nation’s bills. The President has so far decided to abide by the will of Congress." (original).

John Carney: CNBC 01/14/13

"So the first question is whether a newly minted coin counts as 'moneys held in the general fund of the Treasury.' I haven't been able to find any statutory guidance on what this phrase means. But let us grant for a moment that the coin would count as money in the general account. This would mean it could be deposited at the Fed.

But it wouldn't necessarily mean that it could be spent. The second phrase of Subsection 1 [ Section 15 of the Federal Reserve Act] describes what creates deposits against which the government can draw checks. It says that "revenues of the Government or any part thereof may be deposited." Is the platinum coin revenue?" (original).

Mary Beth Quirk: The Consumerist 01/14/13

"Both sides of the coin-operation would need to be in cahoots because if the Treasury made it, the Fed would have to credit it to the government’s account in order to give it enough funds to pay off its debts. It’d all need to be on the books as an official transaction" (original).

Bill Frezza: Real Clear Politics 01/14/13

It looks like the American people have been cheated out of a precious teachable moment. Demonstrating their ability to think two moves ahead, something their Republican opponents seem incapable of, the Democratic leadership has decided to stop dancing around the threat to issue a trillion-dollar coin. The Treasury Department, Saturday, finally issued a flat out denial. (original).

Mike Moffatt: Globe and Mail (Canada) 01/14/13

"The U.S. Federal Reserve and the Treasury Department have rightly killed the $1-trillion coin proposal. Issuing the coin would be poorly understood by the public, could spook foreign investors and it would give the Treasury Department money creation powers that are best left to the Federal Reserve" (original).

Steve Benen: Rachel Maddow 01/14/13

"The protestations notwithstanding, the coin proposal actually looked pretty good from a Republican perspective. They don't want a default, but they don't want to raise the debt ceiling. If Obama minted the coin -- or more accurately, if he ordered Treasury to mint the coin -- the GOP would get everything it wants: a resolution to the crisis, a satisfactory conclusion without so much as a floor vote, and an off-the-wall scheme they'd use to criticize the White House as reckless and irresponsible for a long while" (original).

Anthony Hall: UPI 01/14/13

"The trillion-dollar platinum coin is one of those out-of-left-field ideas that can be used to explain to a middle school math class the relationship between the money supply and national debt, except that a trillion coin has an odd and separate symbolic value in that it would not add to the money supply simply because nobody could make change for it. If it can't be used practically, it's like writing a check with a billion zeros on it. It only looks like it's worth a lot. In reality, it's worthless and we have to live in the real world, after all" (original).

Susan Milligan: US News 01/14/13

"But it looks less like a power-grab when you're dealing with a Congress that includes people who don't seem to understand what the debt ceiling is—a commitment to pay the bills the government has already incurred, not to increase spending by expanding existing programs or creating new ones. On its face, raising the debt ceiling sounds like you're asking for a higher limit on your credit card. Really, it's saying you're not going to refuse to pay your mortgage and then dare the bank to foreclose on the house" (original).

Dave Ross: MYNorthwest.com 01/14/13

" It would have been a monetary flu shot. Once the debt ceiling was raised, the coin would be liquidated, and everything would be back to normal" (original).

Charley Blaine: MSN 01/14/13

"U.S. Mint handout photo of the one-ounce $100 platinum coin (© AP Photo/US Mint)The price of platinum (-PL) jumped 1.7% to nearly $1,660 an ounce -- a three-month high -- Monday despite the Treasury Department's announcement Saturday it would not mint a $1 trillion platinum coin to get around the nation's debt ceiling" (original).

William Black: New Economic Perspectives 01/14/13

"[Heidi] Moore does not understand how a sovereign currency operates. The U.S. has a sovereign currency. When we issue coins we do not have to worry whether the metal in the coin has a market value at least equal to the value we engrave on the coin. We deliberately use less expensive metals such as copper and zinc to make our coins. It would be foolish to use more expensive metals. The value of our coins has nothing to do with their composition. Everyone knows this, for we also use bills. " (original).

Larry Edelson: Uncommon Wisdom 01/14/13

"But the Treasury is broke, so where would the money come from to buy the platinum?" (original).

Huffington Post 01/14/13

"Hank the Cat, the feisty Virginia feline who retired from politics in November after losing an unusual bid for a U.S. Senate seat, has broken two months of near-silence on political issues.

On Saturday, in a post on his campaign Facebook page, the Maine coon shared his conflicting thoughts concerning the possibility that the U.S. Treasury could mint a $1 trillion platinum coin, in an effort to avoid the ongoing debt ceiling conundrum" (original).

Tim Harford: Gulf News 01/14/13

"So the overall effect would be an extra trillion dollars of bonds in private hands, exactly as though the Treasury had borrowed money in the first place?
Yes. The economics of this are surprisingly tame. It’s the politics that are up for grabs, and there are really two questions here. The tactical issue is who would look stupider — Republicans in Congress for using the debt ceiling to prevent the Treasury carrying out Congress’s instructions, or the Obama administration for responding to that threat by using a trillion-dollar coin" (original).

Ann McFeatters: Crescent News 01/14/13

"The most interesting was the trillion dollar coin, which would have been minted out of pure platinum and stored by the Treasury Department as an asset. Presumably, we would all go to our safety deposit boxes and pull out our platinum jewelry and take off our wedding rings and send them to Washington. (Just sorting the real from the fake would be quite a feat.)

The resulting coin would be so gigantic it would need a cavernous new government facility, which every legislator would want in his/her state. It would never get built because that would take an act of Congress, and it's clear Congress doesn't know how to act.

Strangely, the White House did not immediately ridicule this idea" (ORIGINAL_URL">original).

Dusty Rhoades: The Pilot 01/14/13

"[H]ow does one “deposit” a trillion dollar coin? Does the Treasury secretary just stick it in his front pocket and walk it down to the Federal Reserve? Does the Fed have tellers? Does he have to fill out a deposit slip? And hey, wouldn’t this be an open invitation to some supervillain to try to steal the coin?

Also, whose face goes on the TDPC?" (original).

John Carney: CNBC 01/14/13

"IWarren Mosler says that even without a default, going "cold turkey" on a balanced budget would create serious problems:

The economy hitting the debt ceiling and going cold turkey to a balanced budget is a far more catastrophic event than even going over the full cliff would have been, as it disables the "automatic fiscal stabilizers" and instead triggers a pro cyclical downward spiral in output and employment. ....

In other words, if the economy slows because we've hit the debt ceiling, many of the safety nets we've built for the economy come apart. We'll be in a free-fall" (original).

Stephanie Kelton: US News 01/14/13

"The coin appears to remove the constraints on government finance by allowing the government to just "print" money. But like Dorothy with her ruby slippers, that power has existed all along.

"[A] government cannot become insolvent with respect to obligations in its own currency. A fiat money system, like the ones we have today, can produce such claims without limit," said Alan Greenspan in 1997.

If the coin reminds us of that power, it will have done its job." (original).

Natalie Jennings: Washington Post 01/14/13

"'It’s really a shame that the administration is ruling out one of the very few bargaining chips it has with Republican extremists who are intent, once again, on using the debt ceiling as a means of political blackmail,' said Rep. Jerry Nadler (D-N.Y.), who was a proponent of the coin solution" (original).

Brian Browdie: American Banker 01/14/13

"The administration's decision to refrain from minting a coin puts the onus on both branches of government to forge a deal and sets up a battle like the one in 2011, when the president signed an extension of the debt limit over the House's objections" (original).

Voice of Russia 01/14/13

"The coin debate is dead, for now. It is very likely that in the following months this debate will reappear in the media. The problems of the fiscal cliff and American public debt have not been solved so, it is likely that both politicians and economists will be tempted to reconsider this magic, but ultimately toxic, solution to the problems of the US economy" (original).

The Standard (Hong Kong) 01/14/13

"So much for the US$1 trillion platinum coin idea. ... Such a coin could would weigh 15.96 tonnes, the equivalent of nearly seven Saturn V rockets, and occupy 904 cubic meters. It would be 24 meters wide and nearly two meters thick. Not very practical but difficult to steal" (original).

Kelly Hertz: Yankton Press & Dakotan 01/15/13

"The idea, which started on the Internet, was sparked by a curious passage in the 14th Amendment of the U.S. Constitution that may (or may not) allow the government to mint such platinum coinage. The proposal then got some traction, most notably from Nobel Prize-winning economist Paul Krugman, and seemed to be held out as a threat if Congress couldn’t get its act together and come up with a solution at the base of this fiscal wall" (original).

New York Daily News 01/15/13

"A polite round of applause, then, to the Obama administration officials who quietly deep-sixed the horrifyingly hilarious proposal that had gained currency over the past month or so: to mint a trillion-dollar platinum coin. ... Never mind the powers of Congress or the damage to the value of the dollar or the signal that such an insane and desperate gimmick would send to markets around the world" (original).

Michael Grunwald: Time 01/15/13

"After I spent the last two weeks explaining that the Treasury would mint a second Joe Biden before it minted a trillion-dollar platinum coin, that President Obama would make Kim Kardashian his chief of staff before making the coin fantasy a reality, it would be easy for me to gloat. So I will! The coin was a self-evidently wackadoodle idea, and the pundits who fell in love with it should have remembered Obama isn’t in vaudeville" (original).

leftreborn: Daily Kos 01/15/13

"Ben Bernanke appeared at the University Of Michigan Ford School Of Public Policy yesterday and he spoke at length about the current economic situation in the US.

[BERNANKE:] And the first audience question is that, if Treasury had [inaudible] trillion dollar platinum coin [laughter], would the Fed have accepted it and credited Treasury's accounts? If not, why not and what does this mean for the independence of the Fed moving forward?

Well, as you--I'm not going to give that any oxygen. [Laughter] As you probably know, the Treasury and the Federal Reserve over the weekend, the Treasury issued a statement which the Federal Reserve approved stating that we didn't think this was the right way to deal with this problem"

(original).

Lara Hoffmans: Forbes 01/15/13

"The short-lived debate over whether minting trillion dollar platinum coins could solve America’s fiscal restraint (or, rather, lack thereof) appears to have ended—the Treasury and Fed have both declared “no way.” Which clears the way for a fresh debate on raising the debt ceiling the traditional way (i.e. the way it’s been done 105 times before)" (original).

Bruce Bartlett: The New York Times 01/15/13

"But whether or not creating a $1 trillion coin to avoid defaulting on the debt was reasonable, in accounting terms it would have been no big deal — simply a larger scale of what the Treasury and the Fed do every day" (original).

Juli Weiner: Vanity Fair 01/15/13

"A nation’s dreams of an enormous, expensive piece of currency have been crushed, as if by an enormous, expensive piece of currency" (original).

WND 01/15/13

"Over the weekend, Treasury Department officials announced the Obama administration would not pursue the minting of a trillion-dollar platinum coin as a way of reducing our debt or deficits.

But many on the political left are still pushing the idea as legitimate and urging the president to reconsider his position.

Most Republicans were watching this movement with a combination of amusement and bewilderment, but the traction behind the coin idea is now leading to legislative efforts to prevent the government from ever pursuing such an idea" (original).

Alex Hern: New Statesman 01/16/13

"Regardless, the administration's position now is clear. The debt ceiling must be lifted, and they will offer no "concessions" to do so. With the platinum coin out of the equation – and with the so-called "constitutional option", where the President cites the 14th amendment's command that the validity of the public debt "shall not be questioned" and ignores the debt ceiling, ruled out by the White House last month – the Republicans can be under no illusions that if they fail to concede, America will definitely have a messy government shutdown, and will likely enter technical default on its public debt" (original).

People's Daily (China) 01/16/13

"The Obama administration on Saturday killed the idea of minting platinum coins in the denomination of 1 trillion U.S. dollars to generate revenue and avoid the looming battle with Republicans on raising the federal government's debt ceiling" (original).

Walter Russell Mead: The American Interest 01/16/13

"The kids were getting rambunctious, so the grownups had to step in. ... The grownups understand what the kids don’t; money is serious business and playing silly mind games with the public and the markets that undermine faith in the monetary system is a Very Bad Idea." (original).

Haven Pell: Policymic 01/16/13

"Poof. Political problem solved. The Congressional cowards would have no need to cut even one penny of spending nor to raise anyone’s taxes unless there was a strong desire to stick a partisan finger in somebody’s eye. As any drug dealer will quickly tell you, this is where the beauty begins. Give the Congress a taste of free money and it will soon become addicted" (original).

Emily Miller: Washington Times 01/16/13

"Even liberal TV host Jon Stewart found the idea ludicrous. 'How about a $20 trillion coin?' said Mr. Stewart on Thursday’s 'Daily Show' on Comedy Central. 'Or, maybe do one of these — I was digging through the White House couch cushions and Eisenhower must have left one of these $100 quillion bills laying around'" (original).

Ironman: Business Insider 01/16/13

"Using the spot price for platinum of $1,629 per ounce at the close of business on 11 January 2013, we estimate that it would take just over 613,873,542 ounces of platinum to make the coin, which works out to be about 38,367,096.4 pounds, or a bit over 19,183.5 tons" (original).

Joshua Green: Businessweek 01/17/13

"For better or worse (I’ve argued for worse), the White House decided to set up this game of chicken over the debt ceiling rather than the fiscal cliff, which would have been much safer. Killing the coin and the 14th Amendment option, which it did previously, preserves the clarity of this showdown and ensures that Republican capitulation or default are the only choices for resolution" (original).

Matthew Berg: New Economic Perspectives 01/17/13

"Obama is following in the well-worn footsteps of Cortés, who scuttled his ships upon arrival in Mexico, the ancient Chinese general Xiang Yu, who ordered his troops to destroy their boats and supplies before the battle of Julu (“break the kettles and sink the boats”!), and the ancient Romans, who routinely burned their boats or bridges as a deliberate tactic" (original).

Jillian Rayfield: Salon 01/18/13

"Economist and New York Times columnist Paul Krugman slammed Jon Stewart for his segment on the platinum coin, saying that 'Obviously neither he nor his staff did even five minutes of looking at the financial blogs.'" (original).

DaveWade: Daily Political 01/18/13

"The trillion dollar coin idea made its way to the White House Wednesday. Press secretary Jay Carney said that there is neither Plan B nor a backup plan. It is Congress’ responsibility to pay the bills of the United States. With regards to the trillion dollar coin, he said that he has no coins in his pocket" (original).

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