Judge Napolitano Weighs in on the Trillion Dollar Coin Proposal: 'It Would Be Economically Catastrophic'
With the United States more than $16 trillion in debt and fast approaching the debt ceiling once again, a petition on the White House website calls for the Treasury to mint a $1 trillion coin and use it to pay down the debt. Some Democrats have said Obama should consider the trillion-dollar coin option as a way to avert another debt ceiling fiasco with House Republicans, who have demanded significant spending cuts in exchange for agreeing to raise the debt limit.
Economist Paul Krugman wrote in the New York Times that the coin idea is silly, but no less silly than Republicans using the debt ceiling as a negotiating tool.
“(Obama) will, after all, be faced with a choice between two alternatives: one that’s silly but benign, the other that’s equally silly but both vile and disastrous. The decision should be obvious,” Krugman wrote.
Stuart Varney asked Judge Andrew Napolitano this morning what he thinks of the idea. The judge said while this would be lawful under the Constitution, it is an "absurd" idea overall and would solve nothing.
"It would be economically catastrophic. It would result in massive inflation, it would devalue everything that everybody already owns and it would be fruitless. If this were not so, then why doesn't the government give all of us coins and make all of us billionaires?" said Napolitano.
Watch the full discussion: