And all of this is accomplished without ever violating any other territory's sovereignty. We only take legal action against banks operating in our own jurisdiction. The fact that there is some - ahem - fallout for certain disreputable countries is both completely intended and in fact the point... and also completely Somebody Else's Problem.

So why can't this work?

it could.... but for one thing. much banking is international and covert.

patriotic loyalty is subservient to expediency.

'The history of public debt is full of irony. It rarely follows our ideas of order and justice.' Thomas Piketty