Oh, and btw- selecting the chinee for our non-payment is a leverage. But most importantly, how would a now-potemkin village bankrupt china manage anything without their own ability to pay for strategic tools.
Hegemony works both ways. The only way to cut off the bank/politician destruction of our economics is to stop paying them. Which takes willpower no-one in DC has.
So, don’t worry-— we’ll continue to borrow every GD dime from china, and push the “cash” around our banks at zero percent a little while longer. What say you? 33 trillion in debt OK? Just keep hedging and making bucks on the short, till the short runs out. Oh, and buying a bugout place in Singapore.
No, it's unconstitutional, and you can't stop the Chinese from simply selling that debt instrument to someone else (e.g. Carib based hedge funds). Unfortunately since Nixon we live in age where the monetary base is pyramided on U.S. government debt. If you devalue that debt (which is the consequence of your dream of default) it will result in substantially diminishing the purchasing power of the users of that currency - which is us above everyone else.
But most importantly, how would a now-potemkin village bankrupt china manage anything without their own ability to pay for strategic tools.
Goods and services are ultimately paid for in goods and services - trade. The exception is if you have a currency that people use in trade and you can print that currency. Then you don't have to produce goods or services, you just print claims on services. THAT is the process that is destroying the middle class in this country, but the politicians and bankers are happy to keep you focusing on trade as long as it keeps you from noticing the actual source of trouble that empowers and enriches them. Trade is a scapegoat, it isn't a problem. Our trade imbalances are a reflection of the monetary manipulation, they are not the driver. You seek to attack the symptom of the problem, but you're not noticing the cause of the symptom. I implore you to look further up the chain of causation.