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Why do they need that coin to raise their dept limit? Who gets the coin?

• bananabiscuit 5y ago
  Not sure why your being downvoted. Nothing about this makes any sense, I don’t think your questions have obvious answers unless you already knew how it works.
• jfengel 5y ago
  They don't need the coin to raise the debt limit. They need the coin to get around the failure to raise the debt limit. The coin goes to the Federal Reserve, the government's bank. Then the government has money on deposit at the bank, and can write checks for the things that the Congress has already budgeted. Ordinarily they would just sell bonds to the Federal Reserve, which is exactly the same thing. There's a law preventing them from doing that above the authorized debt limit. But there's another law allowing them to mint coins -- which are the same thing, except made out of metal. It would be much easier if Congress would just allow them to borrow the money to spend on the things Congress already ordered them to do. But as a matter of political grandstanding, parts of Congress are standing on the rules... so the President will stand on different rules.