Just as crazy an idea as defaulting on the debt, maybe not.
"Nobody wants to use platinum coins to eliminate the debt. As Paul Krugman
out, there's a limit to how much seigniorage a government can extract
before hyperinflation sets in, and that's certainly far less than $1
trillion, let alone $16 trillion. The trillion-dollar coin is just a
technical fix to the technical problem of the debt ceiling. Remember,
not lifting the debt ceiling doesn't prevent borrowing for new spending.
It prevents borrowing for spending Congress has already appropriated
The Treasury can get around this by minting the trillion dollar coin,
depositing it at the Fed, and paying the bills we've previously promised
to pay -- and nothing more. It's about not defaulting on our debts,
rather than paying them down."
The full in-depth explanation of the entire idea is here: http://www.theatlantic.com/business/archive/2013/01/everything-you-need-to-know-about-the-crazy-plan-to-save-the-economy-with-a-trillion-dollar-coin/266839/