What would actually happen if we defaulted?
Yes...that IS the question...
The problem is that we are allowed to run deficits at all. Republicans go back and forth on decisions to increase spending, but always vote to lower taxes. Democrats go back and forth on tax cuts, but always vote to increase spending.
The only coalitions that form are ones lower taxes, sometimes votes to increase spending, but never a coalition to cut spending overall. That’s just an unsustainable reality - we have been living in a fantasy world since WWII.
“What would actually happen if we defaulted?”
You had better learn to speak chinese!!!
Throughout history, governments default and then reschedule debt. Means other governments/countries avoid doing business with the defaulter until it is shown they have debt under control (makes the locals have to pay very high prices and taxes). That’s the best case scenario. The worst case scenario is war breaks out against the defaulter and the victor(s) carve the country up into little pieces then distribute them amongst themselves to satisfy the debt outstanding.
Well, for one thing... China would be massively screwed, since they own the largest share of our debt.
That said, it would also destroy any remaining value to our dollar and make all imports (like oil, for one) not just expensive, but prohibitively expensive. It’d also end the dollar being thought of as the world’s ‘reserve’ currency, as no country would buy it.