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BELLINGHAM, Wash. -- As more and more economists publicly discuss the idea that a trillion dollar coin could solve our county's debt problems, one local economist says it's a bad idea.
The plan basically calls for the president to direct the US Treasury to mint a trillion dollar platinum coin and use it to by-pass congress to raise the debt ceiling.
Western Washington University economics Professor David Nelson says the made up money would only increase inflation, and would simply delay when the country reaches its debt limit.
He says the technique could also make foreign investors lose respect in the US dollar as the world's reserve currency.
Recently a New York Times columnist and a former US Treasury Chief both said the proposal could work.
The coin could be legal thanks to a law that allows the treasury to make money by minting and selling commemorative coins.
