A congressman from Oregon says he will introduce legislation to put the kibosh on a potential plan to mint trillion dollar platinum coins.
The coins would be used to cover a ballooning federal government deficit and would skirt a potential showdown over an increase to the debt ceiling.
“Some people are in denial about the need to reduce spending and balance the budget. This scheme to mint trillion dollar platinum coins is absurd and dangerous, and would be laughable if the proponents weren’t so serious about it as a solution,” U.S. Rep. Greg Walden, R-Oregon, said in a Monday news release. “I’m introducing a bill to stop it in its tracks.”
A number of outlets have suggested the U.S. Mint could create trillion dollar platinum coins. The coins would be deposited into the Federal Reserve and used to cover the federal government’s bills and avoid hitting the debt ceiling.
“My wife and I have owned and operated a small business since 1986. When it came time to pay the bills, we couldn’t just mint a coin to create more money out of thin air,” Walden added. “We sat down and figured out how to balance the books. That’s what Washington needs to do as well. My bill will take the coin scheme off the table by disallowing the Treasury to mint platinum coins as a way to pay down the debt. We must reduce spending and get our fiscal house in order.”