DD Support Board and Research Team

[janice shell]

Paul Krugman suggests that--if we really need to--we could issue perpetual bonds to deal with the debt ceiling stupidity:

"The first possible strategy is simply to ignore the debt limit, declaring it unconstitutional," Krugman writes. "The 14th Amendment, which says that the validity of U.S. debt 'shall not be questioned,' has been getting a lot of attention…. A second strategy would be to exploit a peculiar legal provision that allows the Treasury to mint platinum coins of any value it chooses…. A third option would be to issue perpetual bonds — bonds that pay interest forever but no principal, and hence have no face value."

https://www.rawstory.com/paul-krugman-2660672626/

I think that could work. Though perhaps the platinum coin would be even easier. And less costly, because no interest would have to be paid on it.