[hinckley buzzard]

Government will begin repudiating large chunks of debt and administering “haircuts” to investors.

The only kink in this scenario is that the largest debt holder of US debt is the Federal Reserve. And they can print their own money ad lib, so no "haircuts" for them.

[familyop]

Yes, and we know that magic funny money is really valuable. The government already paid off the debt with it, because it can do that. ;-)