{"id":1822159,"date":"2023-01-24T12:50:00","date_gmt":"2023-01-24T17:50:00","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1822159"},"modified":"2023-01-24T12:51:09","modified_gmt":"2023-01-24T17:51:09","slug":"house-democrats-propose-eliminating-debt-ceiling-yellen-shoots-down-1-trillion-coin","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/house-democrats-propose-eliminating-debt-ceiling-yellen-shoots-down-1-trillion-coin\/","title":{"rendered":"House Democrats Propose Eliminating Debt Ceiling; Yellen Shoots Down $1 Trillion Coin"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fhouse-democrats-propose-eliminating-debt-ceiling-yellen-shoots-down-1-trillion-coin%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1822159&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47-->\n<p>House Democrats are divided on whether it is time for the debt ceiling to be lifted and unlimited borrowing allowed so the government can spend what it wants.<\/p>\n<p>The federal government is embroiled in yet another fight over the debt limit after Washington exceeded its borrowing limit by $31.4 trillion last week.<\/p>\n<p>Therefore, the Treasury Department employs \u201cextraordinary measures\u201d to help cover the government\u2019s obligations until June, when these tools will be exhausted.<\/p>\n<p>According to a survey, Republicans want a debt-prioritization program that reduces the record growth in federal spending before allowing for an increase in the debt limit. <a href=\"https:\/\/www.washingtonpost.com\/us-policy\/2023\/01\/21\/biden-aides-want-force-gop-abandon-debt-limit-threats\/\">draft GOP proposal<\/a>. A chorus of Democrats argue that it would better for officials to vote to cancel the debt limit, and let the government borrow freely without any limitation or restraint from Congress.<\/p>\n<p>Rep. Bill Foster (D.Ill), proposed legislation entitled \u201cEnd the Threat of Default Act\u201d (<a href=\"https:\/\/edit-foster.house.gov\/sites\/evo-subsites\/foster.house.gov\/files\/evo-media-document\/foster_004_xml.pdf\">pdf<\/a>), which was co-sponsored by 42 House Democrats, including Reps. Rashida Tlaib (D-Mich.), Pramila Jayapal (Wash.), and Sheila Jackson Lee (D-Texas).<\/p>\n<p>Foster compared the situation to \u201cordering an expensive meal at a restaurant, eating it, and skipping out without payment.\u201d<\/p>\n<p>\u201cWeaponizing the debt ceiling and using it as a pawn in partisan budget negotiations is dangerous and repeatedly brings our nation to the brink of default, which would be disastrous to the U.S. economy \u2013 something we\u2019ve witnessed as recently as 2011 when Republicans created a debt ceiling crisis that resulted in the first ever downgrade to the U.S. credit rating,\u201d He stated this in a <a href=\"https:\/\/foster.house.gov\/media\/press-releases\/foster-introduces-legislation-repeal-debt-ceiling\">statement<\/a>.<\/p>\n<p>\u201cWe can and should have a real conversation about overall spending, but the full faith and credit of the United States must never be compromised.\u201d<\/p>\n<figure id=\"attachment_3965249\" class=\"wp-caption alignnone\"><a href=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2021\/08\/25\/Rep.-Bill-Foster-1200x800.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"lazy size-medium wp-image-3965249\" src=\"https:\/\/www.theepochtimes.com\/assets\/themes\/eet\/images\/white.png\" data-src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/01\/Rep.-Bill-Foster-600x400-1.jpg\" alt=\"Rep. Bill Foster\" width=\"600\" height=\"400\"   style=\"display:none\"><figcaption class=\"wp-caption-text\"><noscript><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-3965249\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/01\/Rep.-Bill-Foster-600x400-1.jpg\" alt=\"Rep. Bill Foster\" width=\"600\" height=\"400\" \/><\/noscript><\/figcaption><\/a> Rep. Bill Foster (D.Ill.), speaks about the coronavirus crisis in Washington, DC on October 2, 2020. (J. Scott Applewhite\/Pool\/Getty Images)<\/figure>\n<p>The federal government expects to spend over $6 trillion in the fourth consecutive fiscal years, 2023.<\/p>\n<p>Congress has acted on debt ceiling issues more than 75 times since 1960. They have temporarily extended, raised, and modified the definition of the limit.<\/p>\n<p>The debt ceiling was not abolished by congressional Democrats for the first time.<\/p>\n<p>More than two dozen House Democrats wrote a October resolution. <a href=\"https:\/\/boyle.house.gov\/media-center\/press-releases\/more-30-house-democrats-urge-leadership-undo-threat-posed-debt-ceiling\">letter<\/a> Nancy Pelosi (D.Calif.), the then-House Speaker, and Chuck Schumer the Senate Majority Leader, to support a bill which would allow the Treasury Secretary unilaterally to increase or eliminate the federal debt limit.<\/p>\n<p>\u201cIf the counterintuitive nature of the current debt ceiling process is not reason enough to drive change, then the prospect of Republicans sending our economy into default for political gain should be,\u201d According to the <a href=\"https:\/\/boyle.house.gov\/sites\/evo-subsites\/boyle.house.gov\/files\/evo-media-document\/boyle-debt-ceiling-letter.pdf\">letter<\/a>.<\/p>\n<p>\u201cRepublicans have repeatedly signaled that they are willing and eager to use the debt limit as a bargaining tool if given the opportunity, and we should take them at their word.\u201d<\/p>\n<p>President Joe Biden <a href=\"https:\/\/rollcall.com\/2022\/10\/21\/biden-dismisses-calls-for-abolishing-debt-limit\/\">rejected<\/a> It is the idea. \u201cirresponsible.\u201d<\/p>\n<h2>The $1 Trillion coin is back<\/h2>\n<p>Left-leaning economists, as well as Democratic lawmakers, have proposed the idea of minting $1 trillion worth of platinum coins. These would be deposited at the Federal Reserve and allow politicians to withdraw funds from the account.<\/p>\n<p>Paul Krugman, an economist, was a key figure in the debt ceiling crisis of 2013. <a href=\"https:\/\/krugman.blogs.nytimes.com\/2013\/01\/09\/barbarous-relics\/\">urged<\/a> This idea should be explored by the Treasury Department, even if they are not already \u201clooked silly for a couple of minutes.\u201d<\/p>\n<p>A little over a decade later, the proposal was again championed by him. <a href=\"https:\/\/www.nytimes.com\/2021\/10\/01\/opinion\/biden-coin-democrat-republican-debt-limit.html\">writing<\/a> In October 2021, the Biden White House \u201cshould mint a $1 trillion platinum coin or declare that the Constitution gives it the right to issue whatever debt is needed to fund the government.\u201d<\/p>\n<p>Recent reports suggest that some administration officials and others have considered the possibility that the Treasury could rely on an obscure law to approve the creation of a $1 Trillion coin.<\/p>\n<p>According to supporters, <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/31\/5112\">Section 31 U.S. Code Section 5112<\/a>\u00a0The Treasury has the legal authority and power to issue platinum coins \u201cThe Secretary may mint and issue platinum bullion coins and proof platinum coins in accordance with such specifications, designs, varieties, quantities, denominations, and inscriptions as the Secretary, in the Secretary\u2019s discretion, may prescribe from time to time.\u201d<\/p>\n<figure id=\"attachment_4861554\" class=\"wp-caption alignnone\"><a href=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2022\/11\/14\/U.S.-Treasury-Secretary-Janet-Yellen-1200x852.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"lazy size-medium wp-image-4861554\" src=\"https:\/\/www.theepochtimes.com\/assets\/themes\/eet\/images\/white.png\" data-src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/01\/U.S.-Treasury-Secretary-Janet-Yellen-600x426-1.jpg\" alt=\"U.S. Treasury Secretary Janet Yellen\" width=\"600\" height=\"426\" \/><figcaption class=\"wp-caption-text\"><noscript><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-4861554\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/01\/U.S.-Treasury-Secretary-Janet-Yellen-600x426-1.jpg\" alt=\"U.S. Treasury Secretary Janet Yellen\" width=\"600\" height=\"426\" \/><\/noscript><\/figcaption><\/a> U.S. Treasury Secretary <a href=\"https:\/\/www.theepochtimes.com\/t-janet-yellen\">Janet Yellen<\/a> During an interview with Reuters in New Delhi (India), Nov. 11, 2022. (Altaf Hussain\/Reuters)<\/figure>\n<p>But, speaking in <a href=\"https:\/\/www.wsj.com\/articles\/janet-yellen-dismisses-minting-1-trillion-coin-to-avoid-default-11674417541\">interview<\/a> Janet Yellen, Treasury Secretary to The Wall Street Journal, noted that it wasn&#8217;t certain that the central banks would accept the currency.<\/p>\n<p>\u201cIt truly is not by any means to be taken as a given that the Fed would do it, and I think especially with something that\u2019s a gimmick,\u201d She spoke to the newspaper Sunday. \u201cThe Fed is not required to accept it, there\u2019s no requirement on the part of the Fed. It\u2019s up to them what to do.\u201d<\/p>\n<p>This scheme has been criticized by many. One major complaint is that the Fed would be forced to credit Treasury with non-existent currency, which would mean the institution would need expand the money supply to create inflation.<\/p>\n<p>A second criticism is that the coin will have a face value of $1 trillion and not an intrinsic value.<\/p>\n<p>The opponents claim that it would set precedent for future governments in minting a coin that could pay for their shortfalls. It also sends signals to potential investors that both the U.S. government as well as the economy are in chaos.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>House Democrats are divided on whether it is time for the debt ceiling to be lifted and unlimited borrowing allowed so the government can spend what it wants. The federal government is embroiled in yet another fight over the debt limit after Washington exceeded its borrowing limit by $31.4 trillion last week. Therefore, the Treasury &hellip;<\/p>\n","protected":false},"author":1,"featured_media":1822162,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[10142,15919,5487,3685,11793,3653,4978,8510,5286],"class_list":["post-1822159","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-ceiling","tag-coin","tag-debt","tag-democrats","tag-eliminating","tag-house","tag-propose","tag-shoots","tag-yellen"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1822159","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1822159"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1822159\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1822162"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1822159"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1822159"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1822159"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}