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Derikoopa OP t1_j28dh1b wrote

Reply to comment by tiredstars in eli5: Why couldn't a country in debt mint a coin of immense value and use it to pay off the debt? by Derikoopa

I hadn't considered international currencies. Perhaps you could mint your own country's currency according to the exchange rate?

I will say you've got me regarding the economy. I suppose I was thinking of debt as a human being, that if we are all in debt, then we all have negative money. Therefore, once the coin had been sent to the central bank, it would just kinda.... exist or something xP

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tiredstars t1_j28fuwq wrote

The problem with that first plan is that exchange rates aren't fixed. Generally the more money you print, the lower your exchange rate will go.

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tiredstars t1_j28iypj wrote

Also it is possible for the government to create this money, then take it out of circulation. It produces a billion dollar coin, and then raises taxes (but not spending) by a billion dollars.

Of course, if you pay me $1bn for my debt, then immediately hit me with a $1bn tax, I'm not going to be very happy.

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