Minting a platinum coin sufficient to pay off the deficit is what is traditionally known as monetizing the debt.

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The Fed doesn't have an unlimited capacity because when it buys the debt what it's doing is monetizing the debt.

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If not sterilized, thus neutralizing the impact of the purchases on the money supply, the Fed would be monetizing the debt and a pickup in inflation would be the likely outcome.

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There are only three sources for the needed funds: either an increase in taxes or people increasing savings and putting them into government bonds or the Fed monetizing the debt, or some combination of all three.

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There are only three sources for the needed funds: an increase in taxes, people increasing savings and putting them into government bonds or the Federal Reserve monetizing the debt, or some combination of all three.

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In order to try and stimulate the economy, the United States Federal Reserve System will make good on its plans to employ a policy of monetizing the growing U.S. debt by making significant open market purchases of government bonds.

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Interestingly, the yen has strengthened at a time of increased speculation that the Bank of Japan (BOJ) will finally purchase government bonds directly from the Ministry of Finance, effectively monetizing mounting domestic debt, a move caused by numerous unsuccessful stimulus measures and falling tax revenue.

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Lucky for them, they can in fact allow the pound to drift lower by monetizing some of their debt.

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Monetizing debt and allocating credit, rather than stabilizing the growth of nominal demand and achieving long-run price stability, have brought the Fed into dangerous waters.

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