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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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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The value of money is based on it being guaranteed by assets the market value at least at the value of the money it guarantees.

This $1 trillion coin will not be worth $1 trillion on the market, so using it to guarantee $1 trillion means that there’s more federal reserve money than federal reserve assets at market value. That will reduce the confidence of people in the US dollars, making it being used less internationally and creating inflation.

If the US does it too much, it will create hyperinflation, that is when monthly inflation is at least 50%, so the value of money goes down by at least 130 times a year. What you can buy with $1 now will cost $130 dollars minimum after a year of hyperinflation.

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