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Sovereign Default, the Debt Ceiling, and the $1 Trillion Coin
The US debt ceiling is in the news again due to Congressional gridlock, along with the possibility of a US sovereign default and the unintuitive idea of the US Treasury Department minting a trillion-dollar platinum coin to bypass the problem. This article breaks down some of the nuances involved in this strange situation, which comes up every few years. As of this writing, the US Treasury expects to run out of money by mid-October unless the debt ceiling is raised. However, I’m writing this article in the more evergreen sense so that it can mostly apply to all future debt ceiling situations as well, rather than ... (full story)
