“What will happen when instead of defaulting, the U.S. cancels the bonds in the aftermath of a Chinese attack on a U.S. ally, namely Taiwan? What would be the difference and the consequences thereof?”
I doubt that President Obama would consider Taiwan’s defense worthy of upsetting China.
What would President Palin do?
Would Obama pass up an opportunity to lessen U.S. red ink by $1 trillion? That could guarantee his re-election.
“I doubt that President Obama would consider Taiwans defense worthy of upsetting China.”
True, but hopefully there’s life (and a stand-up President) after BHO. I also hope and pray there are no attacks from anyone (either on us or any of our allies) within this next two years, but the odds aren’t looking good.
Heck, he doesn’t consider OUR defense worthy of upsetting anyone.