Most of the bonds are held by the thieves that created the debt scam by creating the “Federal Reserve.”
They deserve to lose, as as for the private investors, they lose either way; at least the nose dive would end for them. They’re never going to get snot when the whole thing comes down, as it must.
It would definitely not be inflationary. You just don’t understand the inflationary nature of govt bonds. The inflation has already happened, and the exchange would not affect total money supply, and it would almost certainly result in a steady velocity increase that could take us out of this debt caused depression.
Our problem was created by the unwholesome relationship between banks and government. The way people vote is managed by the propaganda ministry (AKA News Media) and works at the behest of the above Bank/Government klatsch.
(remember McCain-2008?)
Bonds are held by holders of every description and are the sacred word of the government of the People. Abrogation would be something only Democrats would even consider.
Bonds are not included in any of the six money supply figures that are tracked. Bonds are not a medium of exchange; they are an income earning asset and, as such, have been purchased by pension funds, insurance companies and banks. Their velocity of circulation is very low since they are NOT money. Replacing their value as bonds with money would place cash in the owners hands and it has a MUCH higher velocity of circulation. For this reason and the fact that the money supply has vastly increased inflation would go through the roof.
On of the tools of the monetary authority is the selling of bonds which removes cash from the money supply and tamps down inflationary pressures. Buying and selling bonds has been used by the Fed since its inception and by the Money Center Banks before that.
The Depression is the result of over-regulation, the Obamacare debacle, the insane Real Estate policy of the RATs and the anti-energy policy of the Administration. Change those things and recovery will begin.