Hypothetically speaking It's new money so let's assume we are able to pay off the entire debt with One New Dollar ( the amount doesn't matter) and let's say that by some chance china decided to accept it as Payment for all of our debt to them ( Hypothetically 1 Trillion Old Dollars); then they would be entitled to use it to buy everything that the old Trillion Dollars would have bought, like 1000 Airplanes that cost 1 billion old dollars each are now only worth $0.001 new dollars for each airplane.
That's called currency manipulation and devaluation inflating out of debt. IMHO.
Or you create a separate currency like Cuba did. One for domestic goods and a separate one for international trading.
We're not going "de-value," we're going to "re-value"... Some might call it a RESET... China will still have the exact same spending and buying power after the revaluation... China accepts our Debt Notes now... Why wouldn't they accept our Debt Free Notes, backed by Coinage...??? With my Theory, we won't have to default on the debt... The debt will be paid in full...
@pocketechange
I'm missing something here or you're not completely explaining it to me so let me ask you to provide an example of how it would be reset value to value and how would they still have the same buying power using an example; if you'd be so kind..... I'd like to understand how this works that you are trying to describe.
After the reset, a revalued penny will have the same buying power as a current Federal Reserve Note Dollar... A Nickel will have the buying power of a current $5 Federal Reserve Note and so on... A one dollar Coin will have the new buying power of a current 100 dollar bill... The Federal Reserve Notes won't reset, only our Coinage will reset... Everything will be reset, from your wages to the price of food at the stores... Even your debt will be reset... If you own 10,000 before the reset, you'll now owe 100 dollars, either in Coin or New Dollars, backed by Coin... Something to note... If you have coinage outside the Banking System before the Reset, you're going to be sitting pretty (in my opinion)...
@pocketechange