Platinum problems

With all the serious unknowns, minting a $1 trillion platinum coin seems an act of hubris.

At the risk of understating the obvious, the fact that we are having a discussion bordering on the serious over running the printing presses to pay our bills - i.e., minting a platinum coin of large dollar value - is troubling. And yet we are. Paul Krugman is enthusiastic in Friday's New York Times: "Mint that coin!" White House press secretary Jay Carney was even asked about minting a coin as a way to avoid negotiating a debt ceiling increase with Congress. Carney didn't rule out the possibility.

Donald Marron, head of the Urban-Brookings Tax Policy Center, seems to agree with the argument made by Bloomberg's Josh Barro and others: in the event that Congress and the president can't come to an agreement on raising the debt ceiling, the United States has limited options, all bad. "In this ugly group," writes Marron, "the platinum coin looks relatively shiny."

What are the options for the president in the event that a deal can't be reached with Congress?

Get access to the full article at The American.


Michael R. Strain is a research fellow at the American Enterprise Institute.

Also Visit
AEIdeas Blog The American Magazine
About the Author

 

Michael R.
Strain

What's new on AEI

Love people, not pleasure
image Oval Office lacks resolve on Ukraine
image Middle East Morass: A public opinion rundown of Iraq, Iran, and more
image Verizon's Inspire Her Mind ad and the facts they didn't tell you
AEI on Facebook
Events Calendar
  • 21
    MON
  • 22
    TUE
  • 23
    WED
  • 24
    THU
  • 25
    FRI
Monday, July 21, 2014 | 9:15 a.m. – 11:30 a.m.
Closing the gaps in health outcomes: Alternative paths forward

Please join us for a broader exploration of targeted interventions that provide real promise for reducing health disparities, limiting or delaying the onset of chronic health conditions, and improving the performance of the US health care system.

Monday, July 21, 2014 | 4:00 p.m. – 5:30 p.m.
Comprehending comprehensive universities

Join us for a panel discussion that seeks to comprehend the comprehensives and to determine the role these schools play in the nation’s college completion agenda.

Tuesday, July 22, 2014 | 8:50 a.m. – 12:00 p.m.
Who governs the Internet? A conversation on securing the multistakeholder process

Please join AEI’s Center for Internet, Communications, and Technology Policy for a conference to address key steps we can take, as members of the global community, to maintain a free Internet.

Event Registration is Closed
Thursday, July 24, 2014 | 9:00 a.m. – 10:00 a.m.
Expanding opportunity in America: A conversation with House Budget Committee Chairman Paul Ryan

Please join us as House Budget Committee Chairman Paul Ryan (R-WI) unveils a new set of policy reforms aimed at reducing poverty and increasing upward mobility throughout America.

Thursday, July 24, 2014 | 6:00 p.m. – 7:15 p.m.
Is it time to end the Export-Import Bank?

We welcome you to join us at AEI as POLITICO’s Ben White moderates a lively debate between Tim Carney, one of the bank’s fiercest critics, and Tony Fratto, one of the agency’s staunchest defenders.

No events scheduled this day.
No events scheduled today.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.