The Trillion Dollar Platinum Coin Documents
Bloomberg Excerpt
The Trillion Dollar Legal Memo
FOIA Files obtained a series of memos from the Justice Department that show a “large denomination platinum coin” was discussed at the highest levels of government.
Ahhhhh, the trillion-dollar-coin. It’s the bête noir of some economists who see such a thing as, at best, a harebrained thought experiment. It’s an economic elixir for others who view it as a way to circumvent the unhealthy cycle of national debt crises.
It’s also a topic that’s near and dear to me, not least because I’ve spent more than a decade trying to pry loose details about it. Now, I finally have something to share from behind the platinum curtain. But — spoiler alert — what I’m able to share with you is pretty barebones, due to heavy redactions.
Before I dive in, I want to fill you in on the epic, and somewhat agonizing, backstory to this latest FOIA haul. It dates back to 2011, when the US government was dangerously close to running out of cash, and politicians were engaged in what is now a regular political showdown over the debt ceiling.
President Barack Obama had been negotiating with Congress to raise the debt ceiling. Republicans, including newly elected Tea Party conservatives, demanded deep spending cuts. A bitter standoff ensued. Then-Treasury Secretary Timothy Geithner warned lawmakers that the US government was staring down economic Armageddon. Uncertainty roiled the markets.
It was in that context that Obama’s top advisors sought guidance from the Office of Legal Counsel. They wanted to know whether Obama could bypass Congress and unilaterally raise the ceiling under Section 4 of the 14th Amendment of the US Constitution, which guarantees the validity of public debt.
**Has to be paywalled because of source.. hyperlink to full article up top.**