The Trillion-Dollar Solution

In 2017 The National Debt reached $20 trillion Dollars. In just 9 years it doubled to $40 Trillion. America added 2.2 trillion dollars to The National Debt in 2025. Interest payments alone are a trillion dollars a year, which is higher than military spending. If this continues, in ten years The National Debt will be over 60 trillion dollars, with interest payments of 1.5 trillion dollars. This trend is so inflationary, that America will face unacceptable economic consequences. Imagine 80 trillion dollars of debt, and interest well over 2 trillion a year. Spending cuts are essential, but until they actually happen, there must be a viable alternative. Trillion-dollar problems require trillion-dollar solutions that can be implemented by fiscal policy changes.

The Trillion-Dollar coin, or a change in Deficit Over-Spending policy, is a solution that could prevent the National Debt from increasing. When the government needs another trillion dollars to cover the shortfall of the budget, they borrow that trillion dollars, with ever increasing interest added on. Borrowing was intended to prevent overspending. This worked for many years, but is no longer the case.

The president can legally mint a coin worth any amount he feels is required, the most common amount is quoted as a Trillion-Dollar coin, but it could be any amount. This coin adds money to the treasury without borrowing from the banks, which would stop the rise of the national debt, stop the increase of interest, and possibly save social security, keeping America strong. All with the stroke of a pen. No billion-dollar investments, no years of infra-structure change, no new government agency, just a stroke of the pen.

Congress could also change fiscal policy concerning over-spending. A Deficit Exemption Law would exempt each years new Deficit from borrowing, with the same effect as a Presidential Trillion-Dollar coin. It’s a change of policy that will be able to cope with an unacceptable debt trend, saving taxpayers from the consequences. No billion-dollar investment required, no new government employees, just a change in the deficit policy, saving trillions with the stroke of a pen.

A quick distinction: The National Deficit is one year’s over-spending. The National Debt is the accumulation of all over-spending. The Deficit Exemption Law would only apply to each year’s new overspending.

The Federal Reserve would then be allowed to give the Treasury sufficient funds to meet over-spending obligations, without more borrowing. Present interest on the debt will not go away until the debt is paid unfortunately. However, this law would keep the debt from increasing, and would also therefore keep the interest from increasing.

The National Debt’s interest is inflationary, and in all likely hood will continue for many, many years. The Trillion-Dollar Solution has no inflationary interest. It can be an emergency parachute to prevent economic un-stability.

The main reason this option has been considered implausible is due to a fear of inflation caused by the additional money supply being added to the economy. There is a key flaw in this reasoning though. Deficit over-spending is included in The Gross Domestic Product. Let me explain why that matters:    If the money supply grows at the same rate as real GDP, prices remain steady, and inflation does not occur! It is a basic economic fact, that can be verified in any economics 101 book.

The main causes of inflation:

1) Cost-Push Inflation     When raw materials, labor, gas, etc., rise, prices to consumers go up to compensate for higher production costs

2) Demand-Pull Inflation    When consumers demand more goods than industry can supply, prices go up      (For example: A lower GDP, like when the pandemic disrupted the labor force, which caused a large drop in production, but not in demand)

3) Excessive Money Supply Growth   If the growth in The Money Supply exceeds the Gross Domestic Production output, or GDP, each dollar is less effective 

Many people quote the classic example of 1946 Italy when a wheelbarrow of money was needed to buy a loaf of bread. This is incorrect. It was the loss of production that caused the inflation, not the excessive money supply. There was no wheat to make bread, (a loss in production), so anybody that had a loaf of bread ate it. And by the way, do you really think they had wheelbarrows of money to take to the store?

Another common misconception is 1972 Zimbabwe. The government there printed a lot of money and it didn’t help. That was also a lack of productive capability. All the money in the world can’t build a bridge or a factory without equipment, or qualified labor, which was the actual problem.

America has a huge productive capability, and a growing economy, which needs a growing money supply that parallels GDP. People would need more money to buy more things. Without extra money, more things can’t be made by manufacturers or purchased by consumers. This is a natural healthy growth that has been ongoing since day one. Money supply always grows with a more productive output.

Now I will explain further why Deficit over-spending being included in The Gross Domestic Product matters:

Lawmakers are worried that an Exemption Law for The Deficit, or A Trillion Dollar Coin would add excessive money to the economy. What they fail to understand is that the over-spending has already increased the GPD of the country. Over-spending is included in GDP! Every dollar that was over-spent has already provided a good or service, and therefore additional money is required to compensate for new growth. It is not an Excessive Money Supply case. Production increased, and money supply increased at the same time:    If the money supply grows at the same rate as real GDP, prices remain steady, and inflation does not occur!  They offset each other, and therefore it does not cause inflation! Visit :                                   for a more detailed explanation.

The Coin, or an Exemption Law is also flexible. If the government actually cut spending some year, The Coin, or Exemption would be lowered automatically, because it applies only to deficit spending. Also, if there were no deficit spending, there would be no exemption spending. It’s a self-regulating solution, until actual Spending Cuts occur.

This is not to say inflation will end, because there are many other factors besides Excessive Money Supply issues: global shortages, rising labor costs, etc., but the inflation will not be due to The Coin, or the Exemption Law. The distinction is extremely important! The actual causes of inflation need to be addressed, rather than perceived causes.

Taxpayers deserve a break!

 Wake up America and demand the Trillion-Dollar Coin!!! The Vietnam War ended only when millions of Americans marched. Trump became president because millions of Americans demanded it. Women got the vote because millions of Americans demanded it. It’s time for millions of Americans to demanded an end to the ever-increasing National Debt!!!

Email your congressman once a month, because nothing motivates a politician more than the threat of losing votes. Tell them you will no longer vote for them if they don’t make The Exemption Law for The Deficit a reality. Do a web search at USA.Gov and find the Official Directory to find your Congressman and Senator. Send them an email. Save your email and click click to send a message in less than a minute every month. Don’t think it’s the other guy’s problem, this affects all of us, and one minute a month is hardly a strain on your time!!! It will take Millions of emails a month to get the ball rolling! Stand up for your rights!!

In 2032 social security is facing a 25% reduction in benefits for everyone. Retired people have no other way to support themselves. The trillion-dollar solution can help Social Security as well as The National Debt due to lower strain on the budget.

If your over 65, get on the stick!! You have all day, right? Put it to good use and email today!!

Cut and paste the following to send to the government officials:

Honorable Congressman or Senator:

I am writing over a dire concern about the unchecked over-spending that has caused The National Debt to be in excess of $40 trillion dollars.

The National Debt was $20 Trillion in 2017. In just 9 years it doubled to $40 Trillion in 2026. A new fiscal policy with trillion-dollar capability is the only answer to a debt that will rise to $60 trillion in just ten years or $80 Tillion in 20 years, if something drastic doesn’t change.

There is an emergency change of fiscal policy that can at least stop the rise of the debt until you can actually cut spending instead of adding $2 trillion a year to it.

Visit:  thetriliondollarsolution.com

If you can’t take this seriously, I will no longer vote for you or your party. Below is the main content of the page. Read it!! Then visit the site. It’s time to give the taxpayers a break, whether or not it is an unconventional solution or not. Borrowing was meant to be a deterrent to overspending, and it has become the norm, with no end in sight.

The unfulfilled promise of spending cuts that never materialize just won’t cut it any more. A law that exempts the yearly deficit from borrowing and allows the Federal Reserve to credit the Treasury with sufficient funds in the event of overspending only, is the only way to keep the debt from reaching to $60 trillion in ten years or $80 trillion in 20 years.

If by some miracle overspending is actually cut, then the exemption law is not invoked, because it is not applicable. It is an automatic way of regulating the policy any year, if cuts are made.

The article addresses the main concern of inflation as well. Interesting is the fact that the over-spending is actually part of the growth in GDP. This growth actually requires an expansion in the money supply, and therefore the extra money doesn’t cause inflation. If the money supply grows at the same rate as real GDP, prices remain steady, and inflation does not occur! It is a basic economic fact, that can be verified in any 101 economics book.

What causes inflation is the interest added to the overspending, which is now over a Trillion Dollars per year. This makes every tax-dollar less effective. There are many causes for inflation other than adding to the money supply. Higher labor, global shortages, rising material cost, etc, just to name a few. Always blaming extra money is inaccurate, detrimental, and it is no longer acceptable.

Borrowing to the excessive amount America now owes has never been so drastic. It requires a drastic change. Furthermore, it is a change that can be made with the stroke of a pen. No billion-dollar investment, no huge addition of government employees, just one new law, or one Presidential Coin.

America demands the government to securer our future!!! Make this change or be voted out!!!

Sincerely,