Would you be kind and explain how this is works? (my suspicion is that it is akin "if you owe bank a $10000, you have a problem. If you owe bank a $100mil, bank has a problem", but please don't let this idea influence your answer)
Thank you.
Thank you.
$1tn is a lot of money to any country, even one as large as China.
Defaulting on our debt would be a huge fucking deal for us as well, but if the stakes were high enough others would understand that we couldn't pay someone money while at war.
It sounds like a lot of money, but the US War in Iraq tallied over a trillion, with Afghanistan matching that amount.
The CARES Act is estimated to have cost $2 trillion.
Countries are not going to go to war over such a petty amount of money. The costs of such a war would be 100x that amount, easily.
"If you owe the bank a 5 million NOK and cannot pay then you have a problem.
If however you owe the bank 500 million NOK and cannot pay then the bank has a problem."