Why the Fed Shouldn't Debit the Securities Account and Credit the Reserve Account

Every month when Treasury bonds settled, the Fed would be in doing repos to spend the money so that the private sector had the banking system. That was when the lights came on about fundamentally why governments don't default with their own currency. They could choose to keep money. If you do that, it's like a game of musical chairs where you take away one of the kids' chairs. The system is closed. This money has to go somewhere.