This is important. I think this is not well understood and these misunderstandings lead to misplaced anger about things like "government spending" and "student loan forgiveness" or government fiscal responsibility in general.
You can absolutely see examples of this in city and state governments in the US that have failed to make pension payments. Kicking the can down the road will eventually catch up with someone.
https://www.detroitnews.com/story/news/local/detroit-city/20...