You are technically correct. However, the problem that the holder of debt always has is -- to collect. The Jews in the middle ages got screwed that way a lot. They loaned money to a feudal lord type...who then reneged on payment. Suppose, for example, you loan me a pile of money which I invest in factories to make stuff. I then inflate my money and pay you off with inflated dollars. You get screwed and I have factories. If I have a good military and have oceans around me, you are out of luck.
Of course, I am not saying that this is the actual plan, you understand. Just pointing out a scenario.
Of course, I am not saying that this is the actual plan, you understand.IMHO, we'll likely have to go into Chapter 11 reorganization and dispose of some of our assets to satisfy our creditors.
Maybe China will accept a territorial exhange of Alaska in leiu of payment of our debt.
Just another possible nightmare scenario to consider.