3,882
edits
2023 United States debt-ceiling crisis: Difference between revisions
2023 United States debt-ceiling crisis (view source)
Revision as of 18:27, 24 May 2023
, 24 May 2023→Other alternatives to avoid a default
| Line 16: | Line 16: | ||
=== Other alternatives to avoid a default === | === Other alternatives to avoid a default === | ||
These alternatives are not very likely and risky for the US, but they could present an alternative in a case of a default. | |||
* 1 trillion platinum coin: Under the proposed scheme, the Treasury would mint a $1 trillion coin | * 1 trillion platinum coin: Under the proposed scheme, the Treasury would mint a $1 trillion coin, deposit it at the Fed, and then draw the money to pay the country’s bills. But Janet Yellen has already dismissed the idea, saying the FED may not go along with such a plan.<ref>https://www.wsj.com/articles/janet-yellen-dismisses-minting-1-trillion-coin-to-avoid-default-11674417541</ref> | ||
* Premium Bonds: the government would renew old, expiring bonds at higher coupon rates. Doing so would not technically add to the nation’s debt. But even some proponents of premium bonds acknowledge that it could face legal challenges or damage the United States’ reputation in the eyes of investors. <ref>https://www.nytimes.com/2023/05/09/us/politics/debt-limit-coins-bonds-workarounds.html</ref> | * Premium Bonds: the government would renew old, expiring bonds at higher coupon rates. Doing so would not technically add to the nation’s debt. But even some proponents of premium bonds acknowledge that it could face legal challenges or damage the United States’ reputation in the eyes of investors. <ref>https://www.nytimes.com/2023/05/09/us/politics/debt-limit-coins-bonds-workarounds.html</ref> | ||
* The 14 Amendment: | * The 14 Amendment: would leverage a clause in the Constitution that says that the validity of public debt should not be questioned. The move would draw an immediate court challenge and could sow uncertainty in the bond market<ref>https://www.nytimes.com/2023/05/09/us/politics/debt-limit-coins-bonds-workarounds.html</ref> | ||
== Republicans Bill == | == Republicans Bill == | ||