Part 7/10:
Loss of Confidence: A payment default could erode trust in U.S. bonds, leading to market unrest.
Increased Borrowing Costs: Interest rates soaring could raise borrowing costs for businesses and consumers alike, stalling economic activity.
Global Economic Turmoil: A default could trigger chaos in global markets, as the U.S. dollar is central to world trade.
Potential Federal Response Failures: Should the Federal Reserve attempt to curb rising yields through extensive money printing, hyperinflation and loss of bond credibility may occur.