Documents Show U.S. Treasury Discussed Debt Solving Platinum Trillion Dollar Coin Idea

The trillion-dollar coin, a platinum coin that would be minted by the U.S. Treasury Department to be delivered to the Federal Reserve to pay

The trillion-dollar coin proposal, a concept that gained traction as a potential solution to raising the U.S. debt ceiling on multiple occasions, has now been revealed to have been considered by the government several times. Memos obtained through Freedom of Information Act (FOIA) requests by journalist Jason Leopold indicate that the idea was seriously discussed by the Treasury Department, despite being dismissed as outrageous by some.

Documents Show U.S. Treasury Discussed Debt Solving Platinum Trillion Dollar Coin Idea

The trillion-dollar coin, a platinum coin that would be minted by the U.S. Treasury Department to be delivered to the Federal Reserve to pay for the rising national debt, was considered outrageous by analysts when it first came to attention in 2011.

The concept, which is enabled by the U.S. Mint's legal authority to issue large denomination platinum coinage, has surfaced in the public discourse several times, particularly during discussions on the debt ceiling.

The proposal was ultimately rejected by Treasury Secretary Janet Yellen, who described it as a “gimmick” and stated that it was not what the world needed from the U.S. However, recent memos obtained through FOIA requests reveal that discussions on this idea did occur at high levels of the government.

Memos acquired by Bloomberg's investigative journalist Jason Leopold, though heavily redacted, show discussions on the issuance of a “large denomination platinum coin” and the potential authorization of the Treasury Secretary regarding this matter in 2013.

Later on, in 2015, another document reveals talks (“oral advice”) between the U.S. Treasury and the Office of Legal Counsel regarding the debt ceiling issue involving the trillion-dollar coin idea.

Further discussions took place in 2023, when another debt ceiling crisis was averted through a bipartisan agreement to suspend the debt ceiling until January 2025.

These discussions suggest that the government may seriously consider this idea in future debt crises, especially now that the U.S. debt has surpassed $35 trillion.

What are your thoughts on the platinum trillion-dollar coin proposal to alleviate the U.S. national debt? Share your comments in the section below.

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