Treasury bonds will establish a probable default rate on origination. Bonds sold have a 3% probability of loss, written into the contract. This is a guarantee of direct inflation. Then the government bonds are properly priced and still valid contracts, they are sanctified. The New Fed is free to buy them and default, according to the prescription on an opportunistic basis.
The terms of the New Fed contract are written right on the bond paper as they are written in law. Since all conditions are freely and voluntarily met the Supremes have no complaint. The 14th is not a guarantee of anything more than the bond contract terms.
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