Opinion | Now is not the time to mint the $1 trillion platinum coin. By jbarro.
for the unconventional and effective measures it has taken to support the economy and the labor market.
A coin issuance that prevents US default but makes it more difficult to obtain bipartisan support for quality Fed nominations and policies would still have significant negative economic effects compared to cleanly raising the debt ceiling. It's best if we can keep the Fed out of this.There is some good news for Democrats here.
A strategy that does not rely on Republican votes at all creates an opportunity for Democrats to design the debt limit increase without any Republican buy-in. This means they could use Republican intransigence as an opportunity to effectively abolish the limit by raising it to so high a level it would never be breached in our lifetime — the limit could be set at a quintillion dollars, for example.
Supporters of republican presidential candidate former Massachusetts Gov. Mitt Romney stand next to a national debt clock during a rally at Exeter High School on January 8, 2012 in Exeter, New Hampshire.Such a move would prevent Republicans from holding the economy hostage by tying up the debt limit in the future.
Pursuing such a move would also create the leverage Democrats have sorely lacked in these negotiations. Why should Republicans cooperate in raising the debt ceiling when Democrats are trying to spend money Republicans don't want to spend? Well, maybe because Republicans don't want to effectively get rid of any debt limit at all.
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