This would not result in massive inflation, because we wouldn’t have a gigantic injection of new money into “the system.” That is only achievable through massive spending beyond which the economy can handle. But this loophole would in no way let the government spend beyond which Congress has allocated through the budget.
And the point about the $100 trillion coin misses the point as well. The current economic constraint is not what we can raise or spend, but rather a dumb law (the debt ceiling) that we would like to get around legally. A $1 trillion coin accomplishes this goal just as easily as a $100 trillion coin does. Remember, the constraint isn’t money, the constraint is law.
So yes, this is very thrilling, and we hope Obama puts an end to this nonsense tomorrow by unveiling the coin.
Now the question everyone is asking is:
“Whose face would be put on the $1t coin?”
Update: Since this post was first published, the talk has EXPLODED.
HuffingtonPost has a huge front-page splash dedicated to the concept.
And there’s a White House petition demanding Obama mint the coin.
And the hashtag #MintTheCoin has gone viral on Twitter.
Even a prominent German newspaper is covering the movement.