This Mises Daily article discusses the idea of some shmuck to issue “trills” - claims on one-trillionth of the US GDP - as a way to finance government spending. Robert Murphy sees this as the fiscal lunacy that it is, but I think something much more important could be emphasized.
Assuming such trills are actually issued and sold, and fast-forwarding ourselves to the day in future (ca. ten years form now) when the US declares bankruptcy and find itself unable to pay trill holders, would that mean that these holders have the right to “confiscate” what is pledged, namely parts of the GDP, namely the right to govern a part of the US that produced such a GDP as that in which they have invested?
Will we have, in 20 years time, a splintered into tens of thousands of ministates and some large land-holders (mostly , as will itself go bankrupt). If so, aren’t such trills the greatest idea among the sorry bunch of crazy ideas states ever had? Should every State issue them? Back to the Renaissance?