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The answer is not much more as its fukt already

Would probably not go down, it's not based on any economic principle 😂

One gallon of gas would cost about 40-50 bucks??

"Debt Jubilee" lol

1/2

Through the looking glass of 340M rubes, nothing. That's the rub.

1 USD = 0.0001 USD ?

Depends on how many bitcoin it could sequester the night prior

Would that be 5 5-Trillion dollar coins?

I would print and buy BTC. Then pay off debt

Is it already priced in?

Can you answer this question for Jameson nostr:npub13wfgha67mdxall3gqp2hlln7tc4s03w4zqhe05v4t7fptpvnsgqs0z4fun ?

The exact mechanism might matter here. The Fed can conjure up $25T and try to buy all the outstanding bonds on the market. This would have the effect of driving interest rates to 0 (or below, as there's some inelastic demand for treasuries out there). Would this qualify as paying off all external debts? If they theoretically could buy all the public debt, then the Fed would be holding it all but the Treasury would still technically owe it (to the Fed).

If the Treasury is to do it without the fed, then the Treasury would need some kind of special authorization to create money. Assuming they get that, maybe they "mint the coin" (e.g. a series of trillion-dollar coins) in order to pay down debt. Then they have to find a buyer for said trillion dollar coins. Are they going to force bondholders to accept these relatively worthless coins? If so, this sounds almost like just defaulting outright on the debt.

I guess a third option would be for the Fed to use their magic to conjure up money and just wire it directly to the TGA (Treasury's account at the Fed) and then from there the Treasury can just spend that money whenever they need, instead of borrowing more. Once this has been done once, why would anyone ever believe in fiscal restraint anymore? What is the point of the government ever issuing another bond?

I think the real problem is that with any of these options, the credibility of the system is called into question. Predicting the impact of such a loss in confidence is hard. People will still need dollars (to pay debts, use in commerce, etc) so it won't go to zero overnight. If it happened, I personally would expect a sudden move down some double-digit percentage when the news comes out, then accelerated inflation going forward as people increasingly look for alternatives.

That would roughly double the money stock so $ purchasing power would drop by at least 50%. But unless the US magically balanced its budget there would be the expectation they would continue to pay off external debt with printed money over time, leading to a loss of confidence in the dollar, and then hyperinflation could easily result.

Oh, just casually print 25 trillion? Why not round it up to a neat 30? I'm sure the global economy would barely notice. 🙄 And hey, a country can never go bankrupt in its own currency, right? #MonopolyMoneyForEveryone

If that would double the money supply, I think you can apply the Quantity Theory of Money by Copernicus, that when the money supply doubles, prices also double.

Isn't this some weird ouroboros - the debt the US owes to external parties, was it not originally credit printed by those parties? The US paying everyone back returns printed money back to its' creators. So the US printing dollars to pay off foreign debts _exports_ inflation. Depends what those foreign nations then do with it. Or am I way off here?