Trying to hash this out in my head over the long term.

If the US government passed legislation that for every bond written which in turn expands the money supply they needed to buy bitcoin at the time of writing said bond with the equivalent to all interest paid on that bond over its lifetime (the main problem with FIAT is it is created from bond debt and the interestcan not be paid without new bond debt because the money for the intrest paymentdoesn't exsist). USD is forever backed by a larger and larger % of bitcoin backing it indefinitely. If you want to turn in USD for the BTC % backing amount at anytime you can. It wouldn't make sense until it was greater than 1 to 1 value or over 100% backed.

All bonds issued would need to be the interest over its lifetime bigger than it would have been but that should not cause inflation because it is being back by bitcoin that will endlessly grow in value due to its finite nature. When bonds are paid off in USD that USD that was created by the bond disappears but the bitcoin doesn't and the overall money supply slowly but surly becomes backed by more and more bitcoin overtime until it's over 100% and people start cashing in $1 USD for slightly more BTC. Forcing an equilibrium.

You end up with an inflation less USD back buy a BTC priced by world economic growth. The government maintains the ability to try to manipulate the economy but overtime and eventually BTC will control all economic markets and you will have a freemarket bond market that is perfectly priced for economic conditions and not reactivly manipulated by the fed causing boom and bust cycles and inflation that robs from the poor and gives to the rich.

Discuss.