U.S. securities are the largest pool in the world and offer a safe haven for all investors, regardless of current low interest rates. Securities dumped by some foreign countries will be bought by others or wind up in the portfolios of domestic investment and retirement accounts. Hopefully many of these securities will be retired (paid off). $Billions in hard currency are lost or destroyed each year. I propose replacing these funds right off the press by paying certain government contracts in cash, or redeeming certain securities in cash. This returns this lost equity to the economy without issuing yet more debt. And, the circulation of this equity will yield tax revenues that can be used to further reduce federal debt.
But what you have described (and describe in general) is a romanticism of Capitalism. In fact, capitalism itself is almost a direct consequence of the Romantic Movement. You must know this cannot, and will not happen - especially now. It is too late to do financial damage control, and containment. That should have been done in 1928, and 1966. It may have been
salvageable now if something like this was implemented even in 1980. But now? You would have to let the economy
collapse to achieve the necessary return in securities alone. Sometimes collapse is a necessary financial ploy - like sacrificing your Queen. But, like sacrificing your Queen, you need to make sure your foundation is strong. America cannot sacrifice its queen - which is trading its debt. It needs debt
now as much as it need a total financial reform; neither will come without a
financial depression, or total economic collapse.
We can always band-aid the situation, recycle the same trash economic practices with minor progressive adjustments, and postpone a collapse for another few decades. However, war won't get America out of debt anymore, because many nations now offer technologically advanced weapons, and cyber-warfare have already dwarfed the best the world allegedly has to offer in weaponry beside electroweak weapons. In other words, the USA no longer has an oligarchy on the global weapons scene, and it is no longer
apparently neutral in conflicts like it was when it was making money selling weapons.
And, this is completely ignoring the world financial institutions that currently exist now - that would never let America get to the point of #1 Financier again. These organizations do not have to refinance their nations; they have enough backed worth to substantiate their currencies. If America and Americans are prudent, we will accept the coming collapse, and prepare
now for the reconstruction. Otherwise, we delay the inevitable.
