A $1 trillion platinum coin could save the United States from bankruptcy

The United States may default on its debt by June 1, but a trillion-dollar platinum coin could help it Avoids bankruptcy?

The United States is battling back-to-back economic challenges while trying to tame inflation. Besides the recent banking crisis, there are fears that the United States may default on its public debt for the first time.

Is Paul Krugman’s $1 Trillion Platinum Coin the Answer?

American economist Paul Krugman introduced the idea of ​​a $1 trillion platinum coin in 2013 with a New York Times op-ed. condition.

Krugman believes, “By minting a trillion-dollar coin, and then depositing it with the Federal Reserve, the Treasury could get enough cash to go over the debt ceiling—while causing no economic harm whatsoever.”

But yesterday, instead of a $1 trillion coin, Krugman Proposal Use of senior bonds to prevent US bankruptcy. He believes there are some confident misconceptions about the $1 trillion coin. Hence, premium bonds are preferred.

“But as I said, people who really should know better are constantly mistaken in imagining that the currency will be inflationary. This is a reason to prefer a path that does not inspire confidence in misconceptions.”

Bitcoin and Gold, Safer Alternatives?

US Treasury Secretary Janet Yellen announced on Monday that the United States may default on the public debt by June 1 if Congress does not extend the debt ceiling.

Congress must decide whether to raise the debt ceiling to prevent the country from defaulting. It is worth noting that since 1960 Congress has extended the debt limit 78 times.

As the United States teeters on the brink of bankruptcy, investors are turning toward alternatives like bitcoin and gold. A community member wrote on: Twitter“Only Bitcoin can save the United States from a complete financial disaster.”

After Yellen’s announcement on Monday, the S&P 500 fell 2.3%, while bitcoin rose 5.8%. Gold is at an all-time high and is up 3.38% since Monday.

BTC/USD Bitstamp. source: TradingView

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