Long Island Accounting Firm, Diapoules & Feinstein CPAs P.C., Respond to the News of the $1 Trillion Platinum Coin Idea Being Rejected

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Following an article about the rejection of the idea to have a $1 trillion platinum coin made in the event of Republicans blocking an increase in debt limit, Diapoules & Feinstein CPAs P.C. offer a response.

On February 5, 2013, Long Island accounting firm, Diapoules & Feinstein CPAs P.C., respond to a New York Times article by Bruce Bartlett, regarding the $1 trillion coin idea, as a result of debt limit increase block, being turned down.

According to The New York Times article, “Washington had been buzzing about the idea of minting a $1 trillion platinum coin in the event that Republicans block an increase in the debt limit (as they did in 2011), until the Treasury and the Federal Reserve rejected the idea.”

The article states that, a $1 trillion platinum coin would not have been a big deal in accounting terms, just a larger scale of what the Treasury does on a day-to-day basis. According to the article, “The Fed would then have credited the Treasury’s account with $1 trillion of cash that could be used to make payments authorized by the Treasury.”

The article explains how the Fed is the Treasury’s bank, taking care of deposits and payments daily. “With the idea now off the table, we may never be able to assess how the coin would have played out. But most likely it would have been business as usual between the Treasury and the Fed,” states the article.

Long Island accounting firm, Diapoules & Feinstein CPAs P.C., offer their thoughts and comments on the idea of a $1 trillion coin. According to Jim Diapoules. ”Thanks should be given to Bruce Bartlett for illuminating the hidden workings and interaction between the Federal Reserve Bank and the US Department of the Treasury. The irony stated in this story is that had the issuance of a trillion dollar coin occurred the criticism of the Fed would have been deafening but the result would have been business as usual.”

Diapoules and Feinstein CPAs P.C have been providing accounting, auditing and tax services to Greater New York City area since 1989. D&F provides our clients with great personal attention and years of professional experience in order to see them succeed and help them to feel confident.

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Jim Diapoules
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