“…a ludicrous but perfectly legal solution is also available to him. Treasury Secretary Tim Geithner can order the United States Mint to create large-denomination platinum coins—a $1 trillion coin, say, or a bunch of $10 billion coins—and use them to finance the government.

Really.

It all goes back to sub-section (k) of 31 USC § 5112 ‘Denominations, Specification, and Design of Coins.’ The opening subsections consists of boring specifications about the coins the United States issues. Subsection (k) says ‘The Secretary may mint and issue platinum bullion coins and proof platinum coins in accordance with such specifications, designs, varieties, quantities, denominations, and inscriptions as the Secretary, in the Secretary’s discretion, may prescribe from time to time.’

So there it is in black and white. Geithner can have the Mint create a $1 trillion coin. Then he can walk it over to the Federal Reserve and deposit it in the Treasury’s account. Then the government can keep sending out the checks—to soldiers and military contractors, to Social Security recipients and doctors who treat Medicare patients, to poor families getting SNAP and to FBI agents—it’s required by law to send—and the checks will clear. It’s a simple, elegant solution.”