Could you provide more information on what you mean by "repudiated the debt"? Does this mean reneging on US Treasury bonds? Because that's nuclear. That causes fixed income markets to implode and brings upon GFC 2.0.
It's implicit in the Mar a Lago model: They will tell debt holders to re-negotiate to longer term debt instruments on low interest or risk losing their money de-facto by being put on some (soverign risk incurring, true) other path which pays out worse for them as the debt holder.
The risk of losing their profit is what I meant by repudiating the debt.
Chinese investor interests hold ~ $800b of debt. Thats not the state, but it is doubtful the state would bail them out: They pick and chose how to fix problems like this and I think the message "You invested in America not us, you wear the risk" would be beneficial to them.
The risk of losing their profit is what I meant by repudiating the debt.
Chinese investor interests hold ~ $800b of debt. Thats not the state, but it is doubtful the state would bail them out: They pick and chose how to fix problems like this and I think the message "You invested in America not us, you wear the risk" would be beneficial to them.