Can the Federal Reserve Ride in on a White Eraser?

Two rounds of QE have now been completed and, as a result, the Fed owns approximately $1.7 Trillion of US Treasuries or around 12% of the US debt. In fact, the amount held by the Fed far exceeds that held by China, Japan or any other foreign government. ... So, what if the Fed... unilaterally decided to cancel those debts? ...wipe all or part of the $1.7T US obligation from their books and notify the US Treasury that they are canceling the debt? ... The US would then be seen as just another banana republic, able to do whatever it wanted in the fiscal monetary arena. This view would place us on the same paths taken by Weimar Germany, Zimbabwe and innumerable other countries who deliberately destroyed their currencies.