It's technically possible to reduce the supply of dollars without totally running into massive issues with fiat, but at the stage we're at, it'd be a very slow grinding process and need to involve real economic expansion to offset the reduction in actual money supply. Given MV=PQ (monetary stock times velocity = price of goods * quantity of goods), if you drive up the quantity of goods while reducing the supply of money (and expanding the velocity of it), even if your prices fall a bit, you can avoid the situation where there is on net a bunch of debt being unable to be serviced.
It would require a drastic increase in efficiency, both by cutting wasteful malinvestment (most of government spending) as well as technological achievements. It's the sort of thing Bessent is trying to say we're going to do when he says "grow out of it" on the assumption that AI is going to make us more productive (even while we refuse to let it do what it's good at, let alone before we figure out how to make it good at doing what we really need).
Practically speaking you're more likely to run a 2 minute mile. But it's within the realm of physical possibility.
