Monetary Realism’s in-house counsel, Beowulf (aka, Carlos Mucha) originated the idea of overcoming the debt ceiling by minting a trillion dollar coin. So it’s nice to see the idea getting some attention (see here). Anyhow, the US Treasury has the legal authority to instruct the US Mint to create a coin of any denomination and simply deliver it to be deposited in the US Treasury account at the Federal Reserve.
It sounds rather silly of course. But it highlights how ridiculous the whole debt ceiling debate is to begin with. After all, the debt ceiling is only reached because Congress ALREADY voted to spend the money that would cause us to get there. The whole debt ceiling debate is mindbogglingly silly. The same politicians who use it to hold the US economy hostage passed the bills that got us here in the first place. It’s like eating a dozen cheese pizzas, tying a knot in your intestine and then threatening your stomach not to digest the food because it might kill you. Yes, that would be stupid because it is.