how the $1 trillion coin minted by the United States and deposited into the treasury doesn’t help resolve the outstanding debt without ramifications.
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It will at a certain point, but i think alot of folks in the thread are missing the point where about how debt works. You dont have to pay off all of the debt all at once. It’s spaced out months/years/even decades. The yearly servicing of this 25+ trillion dollar debt is roughly 300 billion a year ( easily paid by the us gdp)
So on a smaller scale:
you buy a house, you took a loan 1 million dollars at 10% interest rate. you are now 1 million in debt. The bank wants a 100k$/year interest on this loan.
you make 500k a year and have 100k in savings. your debt is 2x your yearly income.
The loan makes you pay 100k a year on interest, but you say that’s fine because you make 500k.
Now you want to take out a car loan because you need to commute to work. The car dealer says, no problem ask the bank for a loan. The bank says, sorry, you’ve reached your 1 million dollar limit and you can’t borrow more, even though your salary can afford both the mortgage on the house and the extra from this car loan.
So what do you do? you take some money from under your mattress and say here ‘s a 100k from my savings, and consider it against my debt amount, and hte bank says fine, your total debt is now only 900k
then you can borrow that extra 100k again.
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