A $1 Trillion Coin Wouldn’t Fix the Root Cause of Debt
By Ed Moy
Assuming we could get past the dubious legality and a $1 trillion coin could avert the imminent debt ceiling crisis, should it be minted? It still would not fix the root cause. It would kick the can down the road until the next imminent debt ceiling crisis. The best predictor of future performance is past performance. Past performance is not good.
What will happen is that the federal government will get used to easy money without accountability. Why stop at the debt ceiling crisis? How about more $1 trillion coins to fund the federal budget? Why only reduce the national debt when you can eliminate it with a few more coins? Why a $1 trillion coin when a $100 trillion coin would be much more cost-effective and leave us some room to spare?
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