America has no problems. US debt is not a problem. Really?

 Writing off USA debts means suicide for the USA. The bulk of the USA debts are held domestically by their banks, retirement fund establishments, big businesses on Wall Street and other USA investors. What will that do to retirees, as one example, is enough for the USA to think about.

The rest of the debts are held by countries like Japan, UK, China and a host of others. Even just writing off those debts is as good (or bad) as committing suicide for the USA, as future attempts to lure those countries to invest in USA securities is going to be just attracting their 'middle fingers' in response. Unless such countries are Anglo-Saxon Whites with different agendas.

Suffice to say, the problem for the USA is more on their domestic investors holding USA debts. Writing those debts off means they get nothing back. What doing that is going to happen inside the USA itself is not going to be peaceful, as overnight, many are going to be wiped out totally.

When we look at them just seizing Russian assets is really turning out to be not a palatable move, as Russia has all the leverage to retaliate. During the COVID19 demonization of China, there were voices in the USA talking about seizing China's Treasury holdings. Why didn't they dare to do it? The reason is simple. Doing that is going to create a dumping tsunami, which the USA is unable to fathom. And who would dare to invest further with that move? Anonymous