A $1 trillion coin is currently seriously being considered by the United States Treasury. Is it a novelty piece to be made just because they can? Is it being made to pay off a huge debt? The answer to those questions is, in a way, Yes.
Such a coin would never find it’s way into circulation or in the hands of a collector. The purpose would be to help raise the debt ceiling, if Congress is unable to. Such a coin could be deposited into Fed accounts and pay debts against the coin instead of relying on bond issuance. Such a solution is completely legal since the Treasury department has prior authorization to mint any coin in any denomination. No Congressional approval is needed, no market jitters.
Of course such a plan would receive and is currently receiving scrutiny, as it would be creating money out of thin air. But many also feel that what the Federal Reserve is doing through quantitative easing is also controversial.
Let’s hope such a plan would aid the economy and not turn into a something like the now worthless $100 trillion Zimbabwean note.