What do you think will happen with the banking system? If we reincorporate then debts do not carry on, I get that for the new USA, but what about individuals debts? Banks in general what happens to their funds not being enough to cover their exposure?
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If you destroy the wealth of the people that have worked and saved all their lives, you have accomplished nothing for the nation.
The plan may get rough, but it had better keep people whole or it is going to start another war on the heels of the one we are currently fighting. You don't leave people nothing to lose.