White House nixes idea for trillion-dollar coin

WASHINGTON -- The White House has ruled out minting a coin worth $1 trillion to pay the government's bills and avoid a nasty battle with Congress over the debt ceiling.

Some of President Barack Obama's liberal allies have been promoting the coin strategy.

White House spokesman Jay Carney nixed that option Saturday. Carney said there are two options: Congress either can pay the tab for spending it has racked up or it can send the nation into default, which would have serious economic consequences.

The government has reached its $16.4 trillion borrowing limit. By late February or early March, the Treasury Department will run out of ways to cover debts and could begin defaulting on government loans.