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IPFS News Link • Economy - Economics USA

EL-ERIAN: The Trillion Dollar Platinum Coin Just Might Work...

•, Matthew Boesler
 Pundits from the political, economic, and investment spheres continue to weigh in on the plan.

Mohamed El-Erian, CEO of PIMCO– the world's biggest bond fund – said in a CNN op-ed today that the trillion dollar coin proposal just might work.

El-Erian writes:
I suspect that market reaction would be generally calm if the option were used as a way to diffuse what could otherwise be a repeat of the debt ceiling debacle in the summer of 2011 -- when political brinkmanship and bickering harmed growth, risk assets and the country's credit rating...It could also encourage Congress to deal once and for all with the oddity of having to consider both annual budgets and disconnected debt limits. In fact, there is a reason why this dual approach is not prevalent outside our borders. It is both redundant and harmful.