Here is my idea: don’t touch the money. Every dollar in existence, continues in existence. The Chinese, for example, hold, say $500 billion in our debt. We pay them back in dollars created for the purpose.
After the sea change, they still hold those dollars. We just don’t owe that money.
All bank loans are cancelled. What do banks have? Demand deposits, savings deposits, and shareholder capital. Those demand deposits are still there. Those dollars are still there.
Clearly, being debt-free will free up money for other uses, which might cause price increases, but everybody who had a dollar, still has a dollar. It’s just that nobody owes anybody anything.
And to this we would append a Balanced Budget Amendment, such that Congress can only spend the revenue actually taken in. As I argue, the value of the dollar will quickly increase, so less and less will be needed.
This thing is doable. I’m convinced of it. I continue to try and find an economist to comment on it, without luck. It’s categorically outside of existing paradigms, but I continue to believe strongly that my logic and factual analysis are both good.