Trillion Dollar Coins - Madness or Amazement?

What is the Trillion Dollar coin?

The USA, like most of the western world has a huge government debt. One way to pay it off would be to actually create more money and give it to their debtors! In America, section 'k' of the 'Denominations, specifications, and design of coins' law states :

“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”

Normally, to meet debts that are due for payment the government will borrow a bit more as bonds and use these 'loans' to pay off the older ones. The idea here (in very simple terms) is that if the secretary [of the treasury] decided to make a few of these coins, he could in effect just pop them in the government's bank account – this way there is plenty of money in their account and the cheques owed to debtors can be issued and cashed!

What is the downside?

If enough of these coins are introduced to the US economy, there is a worry that inflation will spiral out of control. Most people in the know seem to be of the opinion that as long as the government exercises restraint and only produces enough to get by (not to pay off all government debt) then this won't be too much of a problem as the federal reserve can essentially negate (or sterilise) this influx of currency by cancelling some of its reserves.

What will it look like?

One thing we know is that if such a coin is produced it has to be made of Platinum. As far as I can gather, it would have to have someone's face on it and I have gathered that it has to be someone no longer living (I can't find any cast iron proof for this). The most talked about person to adorn such a coin seems to be Ronald Reagan.

Will it happen?

From an interest point of view – I hope so! In reality, I don't think anyone really knows!