The idea, which has been around for about a decade
, is that the president can issue a $1 trillion “commemorative” coin, deposit it with the Federal Reserve, and allow the government to keep paying its bills.
A US government default on its debt would deal a body blow to the economy, resulting in widespread job losses, higher interest rates and economic pain that would last for years. Treasury Secretary Janet Yellen has predicted a “widespread economic catastrophe” if the debt ceiling isn’t raised, with millions of Americans suddenly strapped for cash.
The president does how have a clear power to issue such commemorative coins, which are typically in denominations of $10 or $5, and are sold by the US Mint to coin collectors
. Such coins issued this year include one honoring the National Law Enforcement Memorial and another honoring Christa McAuliffe, the teacher killed when the Challenger space shuttle exploded in 1986.
Some advocates of the plan argue…
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