That is just silly. The underlying liquidity of the USD is totally dependent on the Worlds opinion of the good faith and credit worthiness of the U.S. Treasury.

It the U.S. did somehow achieve a balanced budget and was able to create reserves equal to or greater than our debt, that would mean the U.S. had more reserves than debt, not deficit, no net debt but still trillions of dollars in circulation. Germany issued bonds even when they were running a surplus. Actually, I think, at the time they had a negative interest rate.

TEK