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.
If the bank/lender has had their assets seized. Technically you’d owe the money to the Treasury.
What I’m going to guess would happen. Is a mix of seizures. And Strong arm tactics on any companies/banks/lenders that survive. Probably a renegotiation of interest rates and partial forgiveness on particularly large debts.
The only people likely to receive full forgiveness would be those deep in the hole due to medical costs or some other similar reason.
If your in the hole because you went out and bought a shitload of high dollar stuff with cash you didn’t have. Under the assumption said debt would be forgiven. Your probably shut outta luck as far as full forgiveness. You might see partial forgiveness and interest dropped to something low and manageable. But full forgiveness? Unlikely
And undeserved.