How Joe Biden could end the debt ceiling -- all by himself Minting the trillion-dollar coin,
How Joe Biden could end the debt ceiling — all by himself
Minting the trillion-dollar coin, the 14th Amendment, and other ways to finally kill the debt ceiling.
By Dylan Matthewsdylan@vox.com Sep 27, 2021, 12:20pm EDT
https://www.vox.com/policy-and-politics/22684328/us-debt-ceiling-government-shutdown-biden-democrats
"SNIP......
Stop me if you’ve heard this one before: In a month or so, the US will hit the debt ceiling, a legal limit on how much outstanding debt the federal government can hold. The Democratic president and his party want to raise it, but Republicans in Congress are promising to block them. If nothing happens, the debt ceiling will be breached and the US likely plunged into recession.
This sort of fight happened in 2011, again in 2013, and is set to happen yet again this year. The debt ceiling has become a kind of apocalyptic Groundhog Day in American life. Everyone knows that breaching the ceiling would be almost incomprehensibly bad. The specific ramifications are hard to estimate, but Beth Ann Bovino, chief US economist at Standard and Poor’s, was hardly alone in 2017 when she predicted that “the impact of a default by the U.S. government on its debts would be worse than the collapse of Lehman Brothers in 2008, devastating markets and the economy.”
And yet America keeps doing this. For years, Republican leaders, almost always including Senate Minority Leader Mitch McConnell, have threatened to filibuster or otherwise block bills to increase the debt ceiling as a way to embarrass or extract concessions from the Democratic administration.
........
There are at least four available to President Joe Biden, each with their own advantages and disadvantages:
* Minting super-high-value coins to fund the government
* Invoking the 14th Amendment to nullify the debt ceiling
* Issuing more debt as the “least illegal” option available to the Treasury
* Creating a new class of bond to fund the government while it cannot issue Treasury bonds
......SNIP"
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