Business

Minting a $1T coin is stupid

In a week in which President Obama nominated Jack Lew to replace Tim Geithner at Treasury, all of DC and NY is abuzz with a sort of treasure hunt for Treasury.

The mystical prize is so rich that it would even make Indiana Jones blush, or send Nicolas Cage scouring the attics and basements of the US Mint in search of this national treasure.

It’s a $1 trillion platinum coin.

Yes, $1 trillion, one coin. And so the hunt for “something for nothing” continues.

Once again, Washington and its cadre of partisan economists, including Paul Krugman, are attempting to resort to loophole economics, in “Lew” of legitimate work to address our nation’s debt dilemma head on.

With the debt ceiling now racing toward us — just 60 days away and closing — DC’s delusional left and some who call themselves economists think they may have found the Holy Grail of economics.

The debt “solution” of minting a $1 trillion commemorative platinum coin and depositing it in the Federal Reserve Bank has gone viral on the Internet and Twitter too, under #Mintthecoin.

The way this far-left idea goes is like this: By law, Treasury is required to receive congressional approval for increases in its borrowings, hence the debt-ceiling debate.

Some around the administration have found a loophole that they think would let Treasury circumvent Congress and the bond market.

The law was essentially written for Treasury to have the ability to mint numismatic commemorative platinum coins. Yup, a coin-collector’s clause.

The coins can be minted in any denomination that the secretary elects. So in theory, Treasury would mint a $1 trillion platinum coin and deposit it on account with the Federal Reserve. The difference between the cost to produce the coin and its face value is all profit.

Of course, this is a very extreme interpretation of the law, and it sure doesn’t pass the giggle test.

Treasury-designate Lew — if confirmed — shouldn’t be focusing on commemorating these times with a $1 trillion platinum coin.

Ladies and gentlemen of the Congress, the American people were beyond patient on New Year’s Eve. For the love of country, don’t make us hold our breath on Valentine’s Day.