Congress failed to extend the debt ceiling in 1953. President Dwight D. Eisenhower responded by increasing gold certificate deposits with the Fed, which then credited Treasury's account at the central bank and thus increased the cash balance to pay bills. Treasury spent the profits it had made from the sale without having to issue new debt until the ceiling was raised in 1954. http://www.postcrescent.com/article...ury-Department-Federal-Reserve-prioritize-who Obviously after the ceiling increases Treasury redeems the certificate with a bogus piece of paper -- no one wants to part with actual gold -- and everyone lives happily ever after. Like I said it's a short term debt ceiling fix not a cure for what ails us!