It seems like a new banking system backed by something tangible again like how it was in the 1800's and prior would be a good move but would those of us in debt still be in debt to the banks? If not, how would our debts magically be absolved?
Example, say you owe money on your car and you have a ton of outstanding debt to a bank or credit lender. How exactly does implementing a new system of banking nullify this? Can't the bank still say "Since the USD is defunct, now you owe us the "New US Treasury Certificate" equivalent of that amount"?
I just can't quite put 2 and 2 together how the new currency would be debt free without older debts being absolved first.
OK the old money would be practically worthless so with one doller of new money you could buy 10k of the old money, or something like that.
Problem solved.
If they come out with a new currency, you can bet your ass, they have a plan.
Ahh okay, that clears things up. Hopefully this happens but I won't get my hopes up.
It looks to be the easiest way to handle it.
Another way to explain it is the bank borrowed the money from the fed on the first place. So if the dollar is wiped out and your debt is wiped out, then the banks debt it the fed is wiped out to. The bank doesn’t get to collect anything because they no longer have a debt the needs collecting.