What if Trump tells the people who are “owed” the debt (The Fed) to kick rocks? What are they gonna do? It’s all a scam. And if those money machines that Musk found were turned off, that trillion dollar savings would be a gimme.
All of this is beyond my realm of experience but I think I understand the basics. Of course the Fed has no money - technically. Only Congress can create 'money'. The Fed's money is the local banks assets and some of those assets are Treasuries, along with loans, mortgages, etc - which is 'our' money but our losing that would still be catastrophic.
Then there are the private savings invested in govt bonds as well as pension plans and other capital funds invested in govt bonds. Finally, by my understanding, would be foreign govts and organizations hoping for a return on U.S. Govt bonds and/or treasuries.
American banks that failed a few years ago were maintaining portfolios of treasuries paying small interest rates - foisted on them by the Fed. Interest rates started climbing and those banks were stuck holding low interest bonds that couldn't be traded.
If America defaults on the interest on its debt the dollar could well lose its status as the world's reserve currency. That would cause an economic collapse in this country, sending citizens to the streets searching for thieving carpetbagger politicians.
I suppose this is a bit over simplified but it would never become a problem if politicians were not spending more and more, borrowing more and more, and feathering their own nests more and more. Now they fear those masses in the streets that would be searching specifically for them!
...and tax revenues of course.