[pbhjpbhj]

The USA gov can just print the money to pay off the backed cash. Everyone gets their money. It may not be worth much if everyone actually demanded they could hold the dollar amount of their accounts in their hands in paper money - indeed, I imagine, you'd cause severe privations on the government funds in order to produce the money.

[perl4ever]

"It may not be worth much if everyone actually demanded they could hold the dollar amount of their accounts in their hands in paper money"

If literally nobody (hypothetically) is willing to own actual land, factories, and so on, then it's the tangible assets that are worthless, not the money. It would be the ultimate in deflation.

[ShorsHammer]

I certainly agree it's possible, but at that stage you've gone down the Venezuelan path and I'd assume there are far smarter regulators in the States. The money wouldn't be given out, not even a fraction, it's a such a huge risk to stability that they'd cancel withdrawals and work from there. We saw this happen in Cyprus.