So is this something where the fiat dollar inflates away and withers and dies while the US transitions to sound money?
I'm trying to square that in my head. But I agree that increasing the debt does not pay off the debt.
Discussion
Yes, that's always what governments do. They called it Financial Repression in the 1940s. Everybody does the same thing since the Central Banks were invented, including Weimar Germany. Inflate the debt away with a soft or hard reset, i.e start "backing" your currency with hard assets, land, gold, oil reserves, Bitcoin, etc, launch a new currency or just monetize those assets by creating mechanisms that allow governments to use it as collateral somehow to borrow money, stuff like this, without creating a new currency.
There's many ways to do this, with a new or just the same currency, soft or hard links.
Basically governments monetize the asset part of their balance sheets, i.e land, gold, bitcoin, oil reserves, etc, etc, and then they do a soft or hard link between that and their fiat currency.
This time it's definitely going to be gold and Bitcoin because it's the easiest way to do it because Bitcoin is a neutral reserve system, very easy to be audited globally, etc. It's just the perfect collateral.
If you monetize hard assets like gold and Bitcoin, then those grow MUCH faster than your nominal debt in dollars (35T). You have them (gold and Bitcoin) in your balance sheet and now they're worth 50T, that pays your debt and gives plenty of free money for other things.
This is what's going to happen. Gold and Bitcoin explode (10x) in the next 5 years. Real estate I think loses massively against them. That's the new world in my view.