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I'm thinking we have not shot it down because we can't.
You misspelled 'won't'. It is a balloon, not a Dyson Sphere. It isn't armored,
If I were a derp and wanted to ensure that my balloon wasn’t shot down, I would tell Biden/US Military that shooting it down would release something toxic. Or that coming near it would trigger a massive explosion, or something similar. Whether true or not. Perhaps this is a giant game of chicken.