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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> Minting a $1T coin would absolutely work to eliminate part of the country’s outstanding debt.
> Minting a $1T coin would absolutely have ramifications – though the form and severity of those ramifications are very much an open question.
The usual critique is that “printing money” like this is literally debasing the value of all money in circulation – not only by the direct effect of “watering down” the value of what is currently out there, but also by knock-on effects where the currency itself may be seen as less valuable as a foreign long-term investment if it is likely to be “watered down” again in the future. This then also feeds into the fear of inflation (or hyperinflation) that this kind of process might induce.
Conversely, even if the coin were minted without any immediate inflation or similar side-effects, that fact *itself* could lead to different consequences. Presumably, if minting the first $1T coin worked so flawlessly, then minting a second, or third, etc. becomes increasingly more likely. Continuing this process would eventually wipe out the entire debt, and if the national debt could be wiped out via this “printing money” scheme, then that would have drastic political ramifications.
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