In Ezra Klein?s WonkBlog today, he reports that Treasury Department spokesperson Anthony Coley told him that the U.S. treasury will not mint a trillion-dollar platinum coin to circumvent the debt ceiling.
If they did, Klein believes, the Federal Reserve would not allow it to happen.
Coley told Klein, ?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.?
According to Klein, the Treasury would be unable to mint the coin without the backing of the Federal Reserve anyway.
RELATED: Colbert Relentlessly Mocks ?Silly? Idea To Solve Debt Crisis With Trillion-Dollar Coin
The idea of minting a platinum coin has been around for several years but gained support just after the fiscal cliff negotiations earlier this year. Many, including GOP Congressman Greg Walden (R-OR), called it a ?laughable? idea. Walden planned to introduce a bill to stop the Treasury from being able to mint the coin. On the other side of the debate was Rep. Jerry Nadler (D-NY) who said the idea may ?sound silly? but was ?absolutely legal.?
The White House, it seems, never seriously considered the idea, with Press Secretary Jay Carney saying there was ?no substitute? for congressional action on the debt crisis.
h/t WaPo
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