Default and it will open the door for China to acquire the World Reserve Currency.
I am not even sure folks understand what “default” means.
There are a million different ways to “default” on government debt.
If the government is “short” 1% of its current cash needs then it can just delay payment of any of those obligations it chooses—technically that is a “default”.
States and cities have done that from time to time—not that big a deal.
“Default and it will open the door for China to acquire the World Reserve Currency.”
A default is the result of many years of fiscal fraud and deficit spending. Nobody worried about China then when we actually could have done something about it.
We can print all the dollars we need to technically fulfill our debts. We will do exactly this.
The folks who get repaid will ultimately be just as unhappy as if we didntbrepay them at all.
Presently, China has no effective banking system.
The China banks both tremendously large and village small have ceased or seriously reduced the ability to remove deposits. People with money in the bank are destitute because withdrawals are not allowed. Companies are in the sae shape and aren’t meeting the payrolls for weeks or months at a time
The thought of a China world currency is presently out of question. It can’t happen. The banks are essentially dead
That would mean no more cheap Chinese imports or any cheap imports including oil at all, which would force the US to decouple from globalism. Risky, but not necessarily a bad outcome.