The US printing a 1 trillion dollar coin could actually save the world from a serious financial disaster. As absurd as that is, the 1 trillion dollar coin solution has been floated as a way to stop the US from defaulting on its debt.
And if the US defaults on its debt, it would not only have serious ramifications for the US but the flow on effects will obviously impact the world.
If the coin is minted and sits in the bank, its value would be added to the treasury’s general account and can be used for the countries bills.
Treasury Secretary Janet Yellen has called the coin a gimmick and said "It jeopardizes the independence of the Federal Reserve."
So far only short terms measures have been put in place to raise the debt ceiling, which only delays when the US might default on its debt for now.
The move has never been made before but Obama revealed on a podcast it was considered during his presidency.
Some worry it will cause rising inflation.
However others argue the Treasury could use it to buy back 1 trillion in debt from the fed and retire it and thus no new money hits the economy.
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