Trillion-Dollar Coin Wouldn’t Be Legal, Treasury Says

WASHINGTON (January 13, 2013)--Treasury Department spokesman Anthony Coley says neither his department nor the Federal Reserve believes the law can or should be used to produce such a coin to avoid a coming battle with Congress over government borrowing.

Some of President Barack Obama's liberal allies have been promoting the coin strategy.

The government has reached its $16.4 trillion borrowing limit and by late February or early March, Treasury will run out of ways to cover debts and could begin defaulting on government loans.

White House spokesman Jay Carney said Congress has two options at its disposal.

It can either pay the tab for its spending or send the nation into default, which would have serious economic consequences.

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