By Pamela Haines, Quaker social justice educator with a concern for economics and the environment
On Friday, January 11, economist and New York Times columnist Paul Krugman urged the White House to mint a platinum coin worth $1 trillion. He thought it was less silly—and less dangerous—than playing with the debt ceiling. The White House responded by saying the trillion dollar coin is off the table, because the Federal Reserve declared that it “wouldn’t view the coin as viable.”
Today, the Federal Reserve creates trillions of dollars on its books and lends them at near-zero interest to private banks, which then lend them back to the government and the people at market rates. We have been brainwashed into thinking that it makes more sense to do this than for the government to simply create the money itself, debt- and interest-free.
Some of our greatest leaders — including Benjamin Franklin, Thomas Jefferson, and Abraham Lincoln — realized that the freedom to print money offers a way to break the shackles of debt and free the nation to realize its full potential. Our ignorance on these issues has played into the hands of the 1 percent, who are dependent on the current system for their wealth and power. We have the power to choose prosperity over austerity. But to do it, we must first restore the power to create money to the people.
Read more here about the historic roots of the $1 trillion coin.