Why are the consequences of minting a trillion dollar coin so much worse than the consequences of default?
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It’s not necessarily. The issue with the coin is that it’s legally questionable, and there would be people on the right claiming that Biden had cheated, violated the Constitution, etc. and challenge it in court. If they win, the US defaults because it’s now way above the debt ceiling, and all heck breaks lose in the economy. The problem is the uncertainty.
The alternative is negotiating an increase in the debt ceiling that’s unquestionable.
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