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US rules out making trillion-dollar platinum coin in debt row

Published on Jan 13, 2013 11:40 AM
 

WASHINGTON (AFP) - The Obama administration has ruled out calls for minting a US$1 trillion platinum coin to avert a crisis over the US debt ceiling amid partisan bickering.

The US Treasury officially killed the idea, leaving Congress with the responsibility to increase the government's borrowing limit.

"Neither the Treasury Department nor the Federal Reserve believes that the law can or should be used to facilitate the production of platinum coins for the purpose of avoiding an increase in the debt limit," Treasury spokesman Anthony Coley said in a statement.

The notion had already been put forward during the 2011 debt ceiling debacle, and was revived this year amid fears Congress will not clinch a deal and thus risk causing the United States to default on its bills and financial obligations.

 
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