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there are many ways to avoid default.

(1) discharge petition - bill from committee to a vote.

(2) Fourteenth Amendment Constitution prevents willful default until SCOTUS says otherwise. Just keep issuing debt.

(3) High coupon and low principal. 10-year bond with $1 in principal and annual $100 coupon will increase debt ceiling almost 1000X.

(4) high denominations coin minting




> (4) high denominations coin minting

Far and away the most entertaining path. Who gets to carry the trillion dollar coin from the mint to the treasury? How many heist plots will be foiled? How many movies about said heist plots will be made? Will there be a elaborate motorcade that's ultimately a ruse while the coin is sent by USPS in a plain envelope?


> Who gets to carry the trillion dollar coin from the mint to the treasury?

We should pick America's wealthiest and therefore most trustworthy citizen to do the job.

Bizarrely enough, Simpsons did it.[0]

[0]https://www.youtube.com/watch?v=_KgHy3Pi5Yw


What would be the point of stealing a trillion dollar coin? Who could fence it?


Sounds like something Cobra from GI Joe would do. But in reality, it would have little value to anyone other than the intended bearer.


These are bandaids. Very soon it will become apparent that the US needs to take extraordinary measures to solve its debt problem, and such measures need an extraordinary excuse, more extraordinary than the recent pandemic.


The market doesn't believe this. If it did, the 10 year Treasury bond rate would be a lot higher, instead the yield curve is negative.

https://ycharts.com/indicators/10_year_3_month_treasury_spre...


Market isn't always rational.


It's more rational than Congress at least, is only just.


I mean why ruin the infinite money hose the U.S. has?


The cost to service debt has been going down.




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