Obama Rejects Platinum Coin Debt-Ceiling Solution
4 months ago
The administration believes raising the debt ceiling is still the best possible option.
According to an official statement from the Obama administration, the U.S. Treasury Department will not mint a platinum coin to avoid the debt ceiling. President Barack Obama has never indicated that he was considering “the platinum option.” However, White House spokesman Jay Carney refused to rule it out in a press conference early last week. If the Treasury mints a platinum coin, it could be deposited at the Federal Reserve—giving the Treasury the power to withdraw funds to meet government obligations. The administration, however, would not be granted any new spending powers.
Other possible options include a federal government shutdown and the 14th Amendment, which states that, “The validity of the public debt…shall not be questioned”—neither of which are believed to be necessary to avert default. Republicans are still hopeful to secure aggressive spending cuts by holding the debt ceiling hostage. (Huffington Post)