The U.S. government risks defaulting on its debts and sending the global economy into chaos if Congress doesn't raise the "debt ceiling" this week.
Mitch McConnell refuses to vote for it, and Democrats are still unwilling to end the filibuster to raise the debt ceiling and avert catastrophe. But there's one way President Biden can solve this without needing Congress to act: he can direct the Treasury to mint a $1 trillion coin and use it to back up existing federal spending.
Yes, this is a perfectly legal thing that the president has the power to do. And as odd as it may seem, it's a better plan than unnecessarily causing a global economic crisis.
Sign the petition: Tell President Biden to prevent a debt ceiling disaster and mint the coin!
If the U.S. government doesn't raise the debt ceiling, then it would technically be in default on Treasury debts. This has never happened before, and global financial markets may treat it as a major crisis that could rival the 2008 crash in severity and effect. Minting the coin is one way to avert this disaster.
In a recent Washington Post op-ed, Zach Carter explained how it works: Using authorization granted by Congress in 1996, President Biden can direct the Treasury to mint a $1 trillion platinum coin (and it has to be platinum), deposit it with the Federal Reserve, and use it to finance existing spending. Congress doesn't have to do anything to make this possible.1
This idea was originally proposed in 2011 during a debt ceiling standoff between President Obama and Congressional Republicans, and Demand Progress co-founder Aaron Swartz was a strong proponent of minting the coin.
Minting a $1 trillion platinum coin may seem extreme. But it makes a lot more sense than sitting by while McConnell refuses to vote for a debt ceiling increase, or watching while Senate Democrats choose protecting the filibuster over protecting jobs and household finances from a catastrophe.
The best move would be for Congress to raise the debt ceiling to such a high level that it would never have to be raised again. But until that happens, President Biden should prevent a financial crisis by minting the coin.
Add your name now: Tell President Biden to mint a $1 trillion platinum coin to prevent a financial crisis!
Sources:
1. Washington Post, "The debt ceiling is an absurd problem. Only an absurd solution can save us," October 1, 2021.