What is the point of a trillion-dollar coin?
The trillion-dollar coin is a concept that emerged during the United States debt-ceiling crisis of 2011, as a proposed way to bypass any necessity for the United States Congress to raise the country’s borrowing limit, through the minting of very high-value platinum coins.
What is the largest denomination of coin that the US has ever minted in the past?
The largest coin ever minted by the US Mint was a gold “Half Union” pattern in 1877, weighing 83.45 grams, and 51.1 mm in diameter. The largest coin actually issued by the mint was the Panama-Pacific Exposition $50 gold commemorative, at 83.572 grams and 44 mm.
What does mint the coin mean?
A mint is a primary producer of a country’s coin currency, and it has the consent of the government to manufacture coins to be used as legal tender. A country’s mint is not always located or even owned by the home country, such as when the San Francisco Mint produced 50-centavo silver coins for Mexico in 1906.
Would a trillion-dollar coin affect inflation?
Most people know that when Congress prints (or mints) fiat money, it can cause inflation. However, the trillion dollar coin would not cause runaway inflation, as many might fear, according to an article in The Atlantic. The coin isn’t paying for new spending and, as such, won’t be spent all at once in a lump sum.
Will a trillion-dollar coin cause inflation?
A major concern for economists is hyperinflation. Minting the $1 trillion coin would be like creating money out of thin air. When all that new money poofs into existence, the other currency in circulation becomes less valuable. That could hurt consumers, who are already dealing with price inflation.
Are gold dollars real gold?
Composed of 90% pure gold, it was the smallest denomination of gold currency ever produced by the United States federal government.
How much would a trillion dollar platinum coin weigh?
42,778,918 pounds
Of course this isn’t what is being considered, but what if the U.S. Treasury minted a coin from $1 trillion worth of platinum? Such a coin would weigh 42,778,918 pounds — the equivalent of nearly seven Saturn V rockets — and occupy 31,947 cubic feet.
How long would it take to count to a trillion?
There are 24 hours in a day so you would count 24X60x60 = $8,6400 in one day. There are 365 days in a year so you would count 24X60x60x365 = $31,536,000 in one year. To find how long it would take to count to a trillion dollars divide 1 trillion by 31,536,000. That is 1,000,000,000,000/31,536,000 = 31,709.79 years.
What happened to the trillion-dollar coin concept?
After reaching the headlines during the week of January 7, 2013, use of the trillion -dollar coin concept was ultimately rejected by the Federal Reserve and the Treasury.
Does Nadler propose a trillion-dollar coin trick?
“Looking to the next debt-ceiling fight, Nadler proposes a trillion-dollar coin trick”. Capital (New York) ^ (January 4, 2013). “Der Trick mit der Eine-Billion-Dollar-Münze”. Süddeutsche Zeitung (in German) ^ Weisenthal, Joe (January 4, 2013).
Is the trillion-dollar coin debate the most important fiscal policy debate ever?
He also declared the trillion-dollar coin debate to be “the most important fiscal policy debate of our lifetimes”.
Could the Fed deposit a trillion-dollar coin to pay off the debt?
The Federal Reserve could then deposit the coin in the Treasury, thereby reducing the national debt and postponing or eliminating the need to raise the U.S. debt ceiling. The idea of a trillion-dollar coin gained widespread media attention in 2011 as Washington struggled with the question of whether and how to raise the U.S. debt ceiling.