The resources for subsidies come from printing new money (which is possible by having the world reserve currency), and then spending that new money for deliberate purposes instead of just giving it to the banksters to bid up the asset bubbles. In an imaginary world where we had a Congress that served the People and a mentally competent President, of course.
Who gets subsidized is indeed political, but I don't see a way to sidestep that since there's centralization as soon as you take action to prevent the currency from deflating.
To be clear, the US is not unique in its ability to do this. Many other countries would benefit from understanding it! In the UK we have a government wanting to build a growth strategy around finance. It's like a parody that nobody gets (yet).
But Congress doesn't actually decide to print new money? When they decide to spend they have to raise taxes or issue debt (treasuries).
The federal reserve, on the other hand, controls interest rates and other mechanisms which actually result in money "bring created" for practical purposes.
Yes, that is one of the mechanisms that has hamstrung us from being able to appropriately respond to the economic effects of offshoring. It can obviously be changed.
Or the mechanisms themselves might not actually have to be changed if we could cast off this myopic political red herring about "the deficit". What we perceive as the balance sheet of "the government" needs to include The Fed, Fannie/Freddie, etc. Treasuries owned by other countries are the equivalent of a big savings account. Treasuries owned by the Fed are the same as all the other other debt owned by the Fed - monetary creation / monetary inflation.
Who gets subsidized is indeed political, but I don't see a way to sidestep that since there's centralization as soon as you take action to prevent the currency from deflating.