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jfos's avatar

What do you think would happen if the USA announced the invalidation of Treasury Securities?

Asked by jfos (7362points) August 31st, 2010

Inspired by @bob_’s answer to a recent question, in which he supplied this link.

What if the USA vowed not to reimburse any other countries for the Treasury Security bills/notes/etc. that they hold? Do you think other countries would physically attack the United States? Would they boycott American companies? What do you think?

I apologize for not having enough time to add more to the question’s details. I just wanted to get this question out there.

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7 Answers

ragingloli's avatar

Since the US is an import nation, it would be advisable to forbid all trade towards the US.
Let them starve.

bob_'s avatar

Five simple words: shit would hit the fan.

Lightlyseared's avatar

People (and by people I mean large corporations, governements and incredibly the wealthy) would stop investing in the US. Government bonds are popular because the return is guaranteed if you take that away then there is no reason to invest. Bear in mind that the US issued these bonds because they needed the cash and will porbably need more cash in the future so they need to keep the people who are investing happy. Would countries go to war to get their cash back, probably not.

aprilsimnel's avatar

China would have our asses in a sling. Don’t they own most of those T-bills?

bob_'s avatar

@aprilsimnel China is the largest foreign holder of Treasury securities, followed closely by Japan. See the list here.

ucme's avatar

Well speaking as an Englishman, I see the UK is in bronze medal position. I’d say we’d more than likely pound/£ the yankee arse.

WestRiverrat's avatar

Everyone on SSI would immediately lose all their retirement benefits. All those PO’d senior citizens would make short work of the duly elected representatives that just threw them under the bus.

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