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7 Responses

  1. Clonal Antibody says

    From A trillion-dollar-coin idea takes off, and a former head of the U.S. Mint doesn’t see why it shouldn’t

    But for what it’s worth, the guy who was in charge of the U.S. Mint when the original law providing for the minting of such a coin was passed told me he thinks Nadler’s proposal is perfectly legal.

    “My understanding of how this all works suggests that this is a viable alternative,” said Philip Diehl, a former chief of staff to the late Texas congressman Lloyd Bentsen, who was head of the U.S. Mint from 1994-2000.

    Diehl tried to make the Mint function more like a business, and saw an opportunity in the worldwide market for platinum bullion coins. (The gold bullion coins fashioned by the Mint are not produced at the preferred purity for the worldwide gold trade, Diehl said, making them a tough sell on the international market.)

    Diehl planned to conduct extensive market research, focusing in particular on the hot market for platinum in Japan, and wanted legislation that would allow him to react quickly to those results. The Treasury Department, wary of its bureaus making their own friends on the Hill, was “decidedly unenthusiastic” about the legislation, Diehl said, but he worked closely with Republican Rep. Mike Castle, who was chairman of the House Financial Services Subcommittee at the time, and eventually got the bill through the Republican-controlled House with what Diehl called a “blank check.”

    “One of the ironies in this story is that a G.O.P. Congress passed the legislation over the objections of a Democratic Treasury, and now, today, Treasury may well be in a position to use the law as leverage to neutralize the G.O.P.’s threat to hold the debt limit hostage,” he said.

    The legislation served its purpose; the Mint rushed out a platinum bullion eagle coin—in denominations up to $100—and overtook the market.

    “We brought that coin to market faster than any coin the U.S. Mint had ever brought to market, and within about six months of launching it, we owned about 80 percent of the worldwide market for platinum bullion coins,” he said. “The Canadians had dominated the Japanese and U.S. market up to that time, and we basically took them out of his both markets.”

    “Of course, no one ever imagined that a scenario like this would develop,” said Diehl, who is now C.E.O. of a gold seller in Austin, Texas.

    Diehl said he thought it could be used “as a backstop,” and that it appeared to be on more firm legal ground than the 14th Amendment.

    • Clonal Antibody says

      Now we know who was responsible for the wording of the act.

  2. Oilfield Trash says


    I think the decision has been made to use the coin by the administration if the Republicans force another debt ceiling debate.

    1. The President tell the congress

    “While I will negotiate over many things, I will not have another debate with this Congress over whether or not they should pay the bills that they’ve already racked up through the laws that they passed,”

    2. Geithner has had enough; I suspect he does not support the TDC concept.

    WASHINGTON, Jan. 4 (UPI) — U.S. Treasury Secretary Tim Geithner plans to leave his job.

    I know he has been saying this for a while, which makes me suspect the TDC got serious consideration in the last debt ceiling debate; but was put on put on the back burner due to reelection concerns.

    3. Trillion Dollar Coin Explodes in the MSM and the public debate is on.


    • Michael Sankowski says

      Yes, the amount of attention this is getting is a bit strange. Why now? Unless I’ve massively underestimated the impact of Joe W, there is no way the TDC could have this much traction unless someone big was talking about it.

      It’s everywhere.

  3. Ramanan says

    Don’t know if someone posted this already. Can’t see.

    “A Trillion Dollar Coin Idea Takes Off, and a Former Head of the U.S. Mint doesn’t see why it shouldn’t”

    his name is Philip N. Diehl

    (I still disagree because it needs a trillion worth of platinum and needs to be sold directly to the public).