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I'd assume the thought is that the coin is not fungible in any meaningful way. It's not going to enter the monetary supply, it's more of a loophole to avoid de
by horsawlarway 5y ago
I'd assume the thought is that the coin is not fungible in any meaningful way.
It's not going to enter the monetary supply, it's more of a loophole to avoid debt ceilings.
Now whether avoiding debt ceilings has an impact on inflation is up for debate (my vote is that it will, but I also don't like the debt ceiling in the first place)
- plutonorm 5y agoBut it erodes faith in the currency and that is, ultimately, what gives it value.
- djur 5y agoA debt default or a sudden halt of US government spending, both resulting in economic collapse, would both be much more effective at eroding faith in the value of the US dollar.
- horsawlarway 5y agosure, but as an outsider looking in - the thing that erodes my faith in the currency is not the minting of a trillion dollar coin, it's the complete disfunction of governance that leads to a situation where this is even considered. And the harm is already done on that front. This is relatively low impact compared to other shenanigans.