$FXUS As the debt ceiling crisis escalates on Capitol Hill, a once far-fetched solution to the dilemma has been gaining steam. Talk of a trillion-dollar platinum coin - which would be deposited at the Federal Reserve as an asset swap - could result in an extra $1T to cover a big portion of Washington's bill. In fact, the coin could be minted "within hours of the Treasury Secretary's decision to do so," said Philip Diehl, former director of the U.S. Mint under the Clinton administration. The concept of a trillion-dollar coin dates back to 1992, when populist presidential candidate Bo Gritz suggested the idea during his second White House run. The idea resurfaced during the debt ceiling crisis of 2013 and the Obama administration even explored the possibility before the impasse came to an end with a continuing resolution. The method results in the U.S. minting more money to pay for its obligations, rather than borrowing through Treasuries (or the collection of taxes). Can the Fed print as much money as it wants? While the trillion-dollar coin is not illegal, the accounting ploy has been frowned upon as it could threaten the checks and balances of Congress and open a Pandora's box about all of public finance. It's based on a loophole from a 1996 bill that discusses commemorative coins. According to Law 31 U.S.C. 5112 (k): "The Secretary may mint and issue platinum bullion coins and proof platinum coins in accordance with such specifications, designs, varieties, quantities, denominations and inscriptions as Secretary, in the Secretary's discretion, may prescribe from time to time." Outlook: "I'm opposed to it and I don't believe that we should consider it seriously. It's really a gimmick," Treasury Secretary Janet Yellen told CNBC on Tuesday. The Biden administration has also insisted that the debt ceiling should be raised through bipartisan action, but with a deadline looming for when the government will run out of money, desperate times may call for desperate measures. If the debt ceiling is not resolved by Oct. 18, Yellen has warned that a default would "likely precipitate a historic financial crisis that would compound the damage of the continuing public health emergency, as well as triggering a spike in interest rates, a steep drop in stock prices and other financial turmoil." Первоисточник: Seeking Alpha, статья Trillion-dollar Gimmick, 06.10.2021.