USA is in danger of a government default if the Congress won’t raise the debt ceiling till mid of October. The $1 trillion coin solution could effectively bypass Congress. The idea, which has been around for about a decade, is that the president can issue a $1 trillion „commemorative“ coin, deposit it with the Federal Reserve, and allow the government to keep paying its bills.
Few serious economists actually advocate for the coin solution. The most notable was New York Times columnist Paul Krugman, who has a Nobel Prize in economics, who said last year that using the coin „would just be an accounting gimmick“ that „would just allow Treasury to bypass GOP blackmail“ on the debt ceiling. But as bad as a default would be, most experts oppose the use of the trillion dollar coin. They say that such an audacious way of avoiding default would shake the confidence in the dollar and US Treasury as much or more than an actual default.
Source:
Giorgio A. Tsoukalos, Ancient Astronaut Theory, 2010
cnn.com, Chris Isidore, 25.09.2021