To understand why this is not happening look to the Federal reserve and the entire banking system.
The Fed is a half private/public institution. It is the source of power for all the banking clans and why they have a chokehold on America.
The fractional reserve banking system allows them to create credit ex nihilo and all banks and government borrow this imaginary money from the Fed when they need some more juice, but have to repay it with interest.
Because of the way the economy is established and the massive amount of debt the country is in, it is no longer possible to end the fed. This would destroy the American dollar, reignite the great depression and destroy the lives of regular working class people.
The only reasonable way out of the chokehold is for the government to end the private ownership of the fed and take full control. They then can use the fractional reserve banking system to to create this imaginary money to pay off the national debt, but over the course of 10-20 years so as to keep inflation to a mininum.
If you want to take power back and truly return it to the people, you're going to need a new economic system, one that doesn't rely on a debt based economy.
There is a way, but American conservatives seem to be thoroughly indoctrinated into the Austrian school of economics, which makes true reform extremely difficult.
That style of economics is what the bankers use to their advantage, and unless Americans come up with a new school of economics to revise capitalism and fix the brokeness, America will always be on the path to serfdom.
Many find this hard to accept, but capitalism is a broken system. The closest thing to free market capitalism existed before WWII, and the economy was in recession 40% of the time.
After WWII the government got way more involved in the free market and switched to Keynesian economics and that's what caused the boom. Crony capitalism as many call it, is what many conservatives say the don't want. But keynesianism is crony by nature and most conservatives say you still need some regulation, thus they wish for the crony aspect to help the little guy, but in reality the regulation will always help out the highest bidder.
This is not an advocacy for socialism, as that system is even worse. But there needs to be new theories that are well thought out, and are not set up to the advantage of the banking clans.
You are mistaking the US Dollar for Federal Reserve Notes.
These are two different things.
The FED is a private entity. The currency they issue is a private currency, called FRN or Federal Reserve Note. It means nothing. It is an IOU, I owe you.
What happens when the FED .....
it given all the FRN in circulation? All of a sudden the FED has a problem, Not the USA.
Given the fact that the USA is debtor to the FED, an arrangement can be made to transfer all debt into a holding company, based on the FRN.
Then all FRN's are dumped into the FED. The FRN takes a nosedive.
China is angry for losing a trillion in debt holdings and a couple of trillions for all debts issued in China in FRN's.
Banks do this all the time when their debt load becomes untenable. It's called a bad loan bank.
At any rate, when things go south, it is the taxpayer holding the bag. By doing the same thing what banks usually do, the roles are reversed, and it's the banks that hold the bag.
My goodness, that would be a day ....