US Debt Clock
Let’s say the worst case scenario happens. All of America’s creditors demand their money back. And let’s assume none of them are Americans who the US government can tax.<p>What actually happens? All the debt is denominated in dollars. The US will simply print dollar bills that match exactly what it owes each creditor and give it to them. And they’re done. But before they do that, they will create a new currency, the USDNew, replace every existing $ with USDNew on a one to one basis, and then pay back their debt in old dollars.<p>And the US will change its constitution to say it doesn’t need to always honor its debt.<p>And the US will say that old$ don’t matter anymore.<p>What will be the impact? New$ will basically become $. The old debt will be completely wiped out for free. All the creditors who decided to fuck with the US will be growth worthless pieces of paper or bits.<p>The US’s reputation will be damaged and the dollar hegemony will be severely weakened, but a lot of people who keep pushing the “debt crisis” narratives aren’t fans of the dollar hegemony to begin with and believe it hurts US exports and competitiveness.<p>So basically in the worst case situation the US would have enjoyed decades of benefits for the dollar hegemony, and will now take the advantages of those benefits to compete inehat will be a slightly more even global economic market.<p>IOW, the US doesn’t get hurt at all.