Krugman has this to say about it:
For those not familiar with how financial markets work, US Treasuries are the ultimate safe asset, used as collateral for everything. Even a hint that some Treasuries might not be honored could bring everything to a screeching halt
Musk and Trump are both in the habit of stiffing people they owe money. If markets even suspect that this habit will extend to Treasuries, God help us
Assuming he doesn’t talk that back really fucking quick that’ll literally implode the bond market.
My guess is that this is just him leading up to trying to refuse payment. A few days is hardly enough time to make any real assessment of the debts the treasury services, but all he has to do is say words and the rest of the idiots fall in line.
And the Democrats present a New Deal in 2028
Too bad they had Manchin piss away all their credibility for them.
Or start a war.
A lot of countries have defaulted without doing that. I’m a lot more concerned that it’ll cause an interest rate spike, with associated stock market crash, and bring on a sharp cut in business investment and employment.
Countries are already looking for alternatives to trading with America, the felon is speedrunning Brexit along with everything else.