Bonds are simply a different form of money, such as we saw with QE where they were exchanged for reserves in massive quantity without affecting the overall money supply. Their utility beyond setting monetary policy and serving as welfare for the already wealthy is questionable. Their downside is that they are mistaken for "revenue" and present the false impression of our sovereign currency-issuing government "needing" such to enable its spending on the public purpose.

Erase the Fed rule requiring the T&L account to remain positive before clearing payments for expenditures already authorized, along with the debt ceiling nonsense, and bonds could go away, allowing interest to stabilize at its natural rate of zero. Some premium could be paid on excess reserves over a specified time period to incentivize thrift.