Trillion-Dollar Platinum Coin Discussed by Top US Officials

Recently released government documents confirm that high-level discussions have taken place within the US government about creating a trillion-dollar platinum coin. This idea, proposed as a solution to manage the debt ceiling and avoid default, has been a topic of debate for years.

The trillion-dollar platinum coin concept has been suggested as a way for the US to generate funds without increasing debt. By minting such a coin, the government could theoretically bypass default risks and avoid the constant debt ceiling debates. Although the idea has circulated in various circles, solid evidence of government interest was missing until now.

Through a series of Freedom of Information Act (FOIA) requests, Bloomberg’s Jason Leopold obtained documents from the US Justice Department. These include four heavily redacted files from 2013, 2015, 2021, and 2023, detailing the government’s interest in minting a large denomination platinum coin. The Office of Legal Counsel (OLC) engaged in multiple discussions about the legal feasibility of this idea over the years.

1. 2013 Document: Titled “Authority of the Secretary of the Treasury to Issue a Large Denomination Platinum Coin,” this document includes preliminary research and tentative conclusions, though heavily redacted.
2. 2015 Document: Summarizes oral advice given to Treasury officials on debt ceiling strategies, coinciding with the resurgence of the trillion-dollar coin idea in the media.
3. 2021 Memo: A cover sheet dated May 16, 2023, refers to a 26-page memo from 2021. It mentions “evolving” legal thinking on the debt limit, but most details are redacted.

Leopold is continuing to push for more information. He states, “That’s a tantalizing detail. What does ‘evolve’ mean in this context? Does the office believe Treasury has the legal authority to mint platinum coins? Does it think the president can invoke the 14th Amendment if Congress fails to act on raising the debt ceiling? Or did the Office of Legal Counsel conclude that both propositions weren’t on solid legal ground? We just don’t know.”

The documents reveal that the OLC has been evaluating the legal authority and different strategies related to the debt ceiling for years:

• The 2013 document contains initial research and conclusions, but specifics are withheld.
• The 2015 document shows advice was provided during a period when the trillion-dollar coin concept reemerged.
• The 2021 memo’s cover sheet highlights ongoing legal evaluations, with “evolving” perspectives on the issue.

Unresolved Questions

Leopold’s investigation leaves critical questions unanswered:

• Can the Treasury legally mint a platinum coin of such high value?
• Could the president use the 14th Amendment to address the debt ceiling if Congress does not act?
• Did the OLC ultimately find these strategies legally viable?

These documents confirm ongoing high-level discussions but leave much still unknown.

Minting a trillion-dollar platinum coin could dramatically alter how the US handles its debt ceiling crises. While it could provide a temporary fix, the legal and political ramifications are significant.

The release of these documents reveals serious consideration within the government about the trillion-dollar platinum coin. Although many details remain hidden, it’s clear that the idea has been discussed extensively at high levels. Jason Leopold’s continued efforts may eventually bring more clarity to this controversial topic.