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They can mint coins, though. There was a proposal a few years ago to mint a trillion dollar coin to workaround the debt ceiling.
by TheCoelacanth 4y ago
They can mint coins, though. There was a proposal a few years ago to mint a trillion dollar coin to workaround the debt ceiling.
- landemva 4y agoUnlike paper dollars sold to 'federal reserve' at pennies per sheet, coin dollars are sold at face value. Since we refuse to slow down deficit spending, we can simply coin dollars to pay the bills and thus avoid interest costs on deficit spending.
- thoughtstheseus 4y agoUltra high coupon bonds are the new workaround. The debt limit is on the par value or face value of the debt. If you have a ridiculously high coupon, meaning interest payment, people will pay far above the face value.