Sovereign governments such as the United States can print new money. However, there’s a statutory limit to the amount of paper currency that can be in circulation at any one time.
Ironically, there’s no similar limit on the amount of coinage. A little-known statute gives the secretary of the Treasury the authority to issue platinum coins in any denomination. So some commentators have suggested that the Treasury create two $1 trillion coins, deposit them in its account in the Federal Reserve and write checks on the proceeds.
Sure, printing money tends to carry inflationary risk. But (a) in this case, the risk would be somewhat offset by resolving a political crisis that is causing a lot of angst in the markets, and (b),
To prevent the money from contributing to too rapid inflation, the Fed could simply conduct reverse QE—sell some of its enormous stock of government debt to absord some of the new money in the system. Though it’s unlikely that inflation would be too serious an issue; indeed, it could be helpful.
So, sounds like a great solution. I wonder if they’ve got the presses fired up already. Just make sure that there’s a mighty secure vault to hold them. Also, I hope they won’t do the same stupid thing they keep doing with dollar coins that look just like quarters. Make them square, or something. When you’re digging around for a trillion-dollar coin in your pocket, you want to be sure you can grab the right one quickly.