Retire each existing Treasury bond, in exchange for a new monetary instrument called a "Federal Credit Receipt" (FCR). The FCR is essentially an IOU that is non-interest bearing. This allows economic control over the bonds and where the value is directed. Rather than China selling $2 trillion in bonds, receiving dollars, and then spending them, the Fed & Treasury can decide what can be purchased and define the terms. Example: Social Security can turn in some of their Treasury bonds for a Federal Credit Receipt. The FCR can be used to purchase a Texas Stock Market, with Fed oversight. Inflation stays under control, no more debt service payments or interest, and allows more precise economic planning.
It would work. It's either that, or wait until the American population becomes too poor to pay back the bonds.
Are you a Muslim, out of curiosity? Such aversion to interest, is it a religious thing for you? You wanna replace all US treasuries w/ sukuk?
This has nothing to do with an "aversion to interest". It is viable plan for the financial predicament the world is in. The USD backed by bonds has created a large problem and either the USD collapses or it transitions to a different accounting mechanism. EDIT: No, I am not Muslim. I am suggesting a monetary mechanism that can transition from bonds and control where the value is directed. Example: If China sells $5 trillion, they receive USD that can be spent freely. That is a difficult thing to manage from an inflation perspective.