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By Vincent A. Pundt
TRILLION DOLLAR COIN SOLUTION TO RAISE THE DEBT CEILING AND AVOID A DEFAULT
By Vincent A. Pundt
Although the following solution was not timely enough for the recently averted United States “debt ceiling” crisis, it provides a realistic and permanent solution that does not place the country (or world) at risk on a periodic basis due to political posturing.
American citizens have grown weary of the routine dysfunction that the “debt ceiling” situation causes. It is an illogical political football, and the public has seen enough of the game to know there are no winners. Neither of the major political parties can escape responsibility for the national debt. The public is not nearly as ignorant as elected officials may think. As everyone, including voters, knows, the “debt ceiling” issue has been created over a long-term period. Neither the Republicans nor the Democrats can place the blame entirely at the doorstep of the other Party, which accomplishes nothing but discord.
The majority of U. S. citizens want a solution that includes:
1. An immediate end to the total dysfunction of operations of the United States of America caused by the debt ceiling” issue;
2. The U.S. Treasury minting several Trillion-dollar coins (31, to be exact, in the first issue) and providing them to the Federal Reserve to satisfy the $31 T debt and avert the continuing “debt ceiling” crisis created by Congress;
3. Adherence to Article I, Section 8, which specifically instructs and allows CONGRESS, among other obligations, to: pay the Debts, borrow funds, coin money;
4. Abiding by the Constitution of the United States, which dictates that our debt, the result of budgeting, spending, tax cuts, and other issues created by both Republican and Democratic administrations, MUST be paid;
5. The issuance of a properly designed and minted series of special issue coins, which can be done under Article I, Section 8 (noted above); and under 31 USC §5136 (Pub. L. 104-52, title V, §522, Nov. 19, 1995, 109 Stat. 494);
6. Recognition that the minting of a properly designed and minted series of special issue coins is permitted and has a foundation under the 14th Amendment, Section 4 of the Constitution where the language is specific, and in particular: “The validity of the public debt of the United States, authorized by law, including debts incurred for payment pensions and bounties for service in suppressing insurrection or rebellion, shall not be questioned;"
7. The issue of this special coin would be difficult, if not impossible, to replicate thereby eliminating virtually any chance of counterfeiting. Nobody could possess any such counterfeit coin since no individual or entity other than the United States Treasury would be able to afford such a coin. The Trillion-dollar coin could only be possessed or exchanged between the United States Treasury and the Federal Reserve;
The properly designed and minted series of special issue coins
would be unique in that only the United States
Treasury could mint the coins, the coins would be specifically
designed such that the value would be different from anything
else in existence, and, the United States Treasury would
determine the coins intrinsic value. The coins could be designed in the
(a) The Trillion-dollar coin would be possessed by the U.S. Treasury or the Federal Reserve, exclusively, with the unique colors of the flag of the United States;
(b) The Trillion-dollar coin would be platinum (white); with a Red Berly gem (unique and rare as found only in the United States, see https://en.wikipedia.org/wiki/Red_beryl) embedded in it (red); and with a Blue Benitoite gem (unique and rare as found only in a few places on earth, including the United States, which has the rarest, see https://en.wikipedia.org/wiki/Benitoite) embedded in it (blue);
(c) The Trillion-dollar coin would have a unique design on both the front and the back with reference to the United States Constitution and Congress;
(d) The first issue of this unique Trillion-dollar coin would include only 31 coins; and
If a later second or third issue of
such a unique coin would be necessary, it would be set forth with a
separate design in mind; however, with the same general makeup
of the rare gems noted above;
9. Such a unique coin, with embedded gems, would be a demonstration of the vast mineral wealth of the United States; and
10.The possibility for the United States Treasury to reacquire each Trillion-dollar coin from the Federal Reserve when Congress gets around to balancing the budget and developing a reserve.
The foregoing is a practical solution to the unconstitutional “debt ceiling” debate, which pulls the attention of Congress away from the day-to-day operations and actual priorities of the government and, more particularly, distresses and holds hostage the public, disrupts the financial markets, and threatens our democracy. This is a very sound business solution, and most likely one that the founding fathers would have embraced. The public certainly would love an idea that puts an end to the manufactured crisis, so why doesn’t Congress do the right thing and listen to the public for once? Afterall, if the average citizen were to refuse to pay their debts and instead attempted to renegotiate what they had already spent, they would end up in jail. Next time Congress, please, pay our debts promptly, and then debate our future budget and where our funds are best allocated.
ABOUT THE AUTHOR: Mr. Pundt is a practicing attorney in the state of Iowa and the Vice President of a software corporation.