Spain, like Greece, is on the verge of utter economic collapse. No way the government there could solve its problem.
...but “boots on the ground” visitors observe that people are handling it very well: knowing the official/formal system is about to collapse, people are just moving everything off-book, normalizing a new underground economy, and carrying on rather well.
Yes, the $0.2P of liabilities ain’t happening no way no how. The buck will stop somewhere. Knowing it will stop, most people will find a way to be elsewhere when/where it does. Those who don’t, well, sink or swim.
The Soviet Union collapsed when it couldn’t issue paychecks. We’re approaching that point. Funny, Russia and its satellites still exist and are doing pretty well. We will too; maybe a different demographic arrangement, but on the whole “we” will manage.
Russia had an established black market and people who were used to working around a corrupt government. We don't have such systems outside the ghetto and drug dealers. In a total US collapse, illegal drugs will still be traded as usual, but access to legal drugs - access to food and clothing - those things will collapse with the dollar. I'm with you that we'll 'figure it out' but it could be months - even a few years - and many deaths later...
the current yields on treasury’s would disagree with you.