Anybody heard of coin seniorage?

There's a Solution to the Debt Fight That Could Avert Catastrophe -- Why Is Everyone Ignoring It? | News & Politics | AlterNet: "So tomorrow, Geithner could order the mint to manufacture a couple of trillion-dollar platinum coins and swap them for public debt now held by the Federal Reserve. The coins, unlike the bonds held by the Fed, don't count as debt, so the transaction would bring us $2 trillion below the debt ceiling and the manufactured “crisis” would be averted." Sounds like sleight of hand to me.

Global Online Privacy