Once again this is a case of needing to understand that extreme right-wing blogs aren't the God's honest truth. As any naturalized American (and at least a few of us native-born ones) knows, it's
Congress, not the President, that has the power to tax and spend. And the Executive branch has
always been the one to mint money. Read "American 'Thinker'" with a great deal of salt!
President Obama is a true Constitutional scholar, and his past executive decisions have proved his commitment to honoring the Constitution of the United States of America. Unfortunately the authors of the Constitution didn't make any provisions for a mutinous Congress. President Obama must do something to save the US from its enemies, including the Republicans.
Minting a large denomination coin is better for the American people than another sovereign debt default, that's for sure! However it has problems in the long run. Even though the coin would never go into circulation, it could dilute the value of the US Dollar, which would in turn raise the price of everything that the US imports. It could also cause the US' largest creditors to lose confidence in the US Dollar. But since that's why there would be any need to mint a "trillion dollar coin" in the first place, there would be no net loss if that should happen.
What's still not clear is how the President could use this coin to pay the minimum amounts due on all of the US' loans. For domestic creditors, this could be done in the form of a tax credit. But since the bulk of US sovereign debt is owed to foreign governments, that wouldn't help there. The payments could be made with
zero-coupon sovereign bonds (which is already being done in Europe) or
scrip.
The bottom line is that the President has a Constitutional duty to save the US from
all enemies, and minting a trillion dollar coin is a reasonable next step in this time of crisis.