It’d be a stealth way to sidestep confrontation over whether Congress should raise the official debt limit, so that the Treasury could borrow money to pay the nation’s bills. Many Republicans would like to use the debt-ceiling issue as leverage in pushing for reductions in federal spending.
This “magic coin” idea, like the Death Star one, has thousands of supporters behind it as an online petition on the White House’s “We the People” petition venue.
“We would avert the absurd-yet-imminent debt ceiling faceoff in Congress in two quick and simple steps!” the petition states. “While this may seem like an unnecessarily extreme measure, it is no more absurd than playing political football with the US – and global – economy at stake.”
The $1 trillion coin could in theory give the Treasury fiscal breathing room. Rather than wait for Congress to approve more borrowing – and see the nation effectively default on its debt if Congress fails to do so quickly – the administration would employ the coin as a kind of bank account with the Federal Reserve against which the Treasury could draw.