Debasing the currency is equivalent to a soft default, and would accelerate investment away from the dollar and treasuries. Mechanically, certainly, it can be done, but investors won’t do nothing while the US inflates their asset value away. They’ll take the loss (which they’d take anyway from monetizing the debt) and reallocate elsewhere.

Part of the reason Ray Dalio was on Bloomberg saying to sell bonds and buy gold or Bitcoin. Treasuries used to be where capital would “flee for safety” and that concept is breaking down.

Dalio Says Sell Bonds, Buy Gold, Bitcoin as Debt Crisis Looms - https://www.bloomberg.com/news/articles/2026-08-21/dalio-say... | https://archive.today/jlUBA - August 21st, 2026