There is also the third scenario. We default on one trillion dollars of debt owned by the Chinese and the drop the h bomb on us.
“There is also the third scenario. We default on one trillion dollars of debt owned by the Chinese and the drop the h bomb on us.”
China tends to act cautiously. They think that time is on their side. Military action would be very bad for business, especially when the would still need us to buy their goods. Communists only care about power, and losing power is worse for them than losing a trillion dollars.
OPEC, China, Russia, and some other countries decide to move away from trading in US dollars.