The concept isn't really about how one would use or spend such a coin. In practice, if this were ever to happen, they would be issued to banks who would throw it in a vault somewhere and then use it as a reserve for lending just as they would any other asset.
The point here is about constitutional law, not so much monentary policy. The US constitution grants to congress the exclusive power to assume debt on behalf of the government, the president and executive branch can't do that. But congress tends to be paralyzed by partisan institutions (the filibuster et. al.) and can't act with agility to issue debt in response to deflationary stimulus.
BUT, it turns out that the mint is allowed (by a law passed by congress) to print money in any amount it wants as long as it's done via a platinum coin. So you can just print a coin and use it to pay off any debt you want. Instant spending.
It's a cute loophole, really, and a joke about the way american government works. It's not a serious idea about economics.
The point here is about constitutional law, not so much monentary policy. The US constitution grants to congress the exclusive power to assume debt on behalf of the government, the president and executive branch can't do that. But congress tends to be paralyzed by partisan institutions (the filibuster et. al.) and can't act with agility to issue debt in response to deflationary stimulus.
BUT, it turns out that the mint is allowed (by a law passed by congress) to print money in any amount it wants as long as it's done via a platinum coin. So you can just print a coin and use it to pay off any debt you want. Instant spending.
It's a cute loophole, really, and a joke about the way american government works. It's not a serious idea about economics.