Quantcast

Yellen Rejects $1T Coin

(Associated Press) U.S. Treasury Secretary Janet Yellen said Tuesday that Oct. 18 remains the date she is likely to run out of resources to stave off an unprecedented default on the nation’s debt without congressional action to raise the debt limit. She rejected the idea of minting a $1 trillion coin to avoid a default.

Appearing on CNBC Yellen said that if a default were to occur “I fully expect it would cause a recession as well” along with preventing the government from paying benefits to 50 million Social Security recipients and meeting the government’s other bills.

She said it would be “catastrophic” if the government did not have the resources to pay its bills.

Yellen flatly rejected a novel idea that has been put forward to mint a $1 trillion coin and use that to avoid a default on the debt.

“I am opposed to it and I don’t be believe we should consider it seriously,” she said.

“The platinum coin is the equivalent of asking the Fed to mint money to cover the debt,” she said. She said what needs to be done is for Congress and the administration to show they can be trusted to pay the country’s bills.

On Monday, President Joe Biden said he could not guarantee that the U.S. government will not default on the debt as he sought to put more pressure on Republicans to stop blocking a Democratic effort to raise the debt ceiling.

Senate Majority Leader Chuck Schumer, D-N.Y., has said he will try to get legislation passed to raise the debt limit before the deadline but will need Republicans in the Senate to agree not to block the effort through a filibuster.

TRENDING NOW

Virtue-Signaling Starbucks in Awkward Spot as Workers Move to Unionize

(Headline USA) The leftist-loving public image Starbucks has carefully cultivated is taking a hit as it fights an expanded effort to unionize its stores,...

Report: Raising Cigarette Taxes Will Fuel Black Market Crime

(Brad Polumbo, Foundation for Economic Education) Congress is currently considering a large increase in federal taxes on cigarette and nicotine products, as part...

Biden Administration Won’t Name China a Currency Manipulator

(Associated Press) The Biden administration will not designate any country as a currency manipulator, but it did name China, Vietnam and Taiwan...

LA Authorities Announce Arrests in Smash-and-Grab Robberies

(Associated Press) Authorities in Los Angeles on Thursday announced more than a dozen arrests in recent smash-and-grab thefts at stores where nearly...

Black Lives Matter Slammed for Call to Boycott White Businesses

(MEAWW) Black Lives Matter has continued with its tradition of boycotting “white companies” for the seventh year in a row during the...