More importantly, most of this debt is held by private investors in these countries rather than the government's of those countries. Consequently, most of these people will pull out of our market based on economic judgement calls, not political motivations. And considering the US is still by far the best bond market in the world, I don't think we should be overly alarmed. On the other hand, a study by a group affiliated with the S&P 500 pointed out that at current trends our government bonds will be reduced to junk bond status within a few decades if we don't start cutting the deficit.
I dont expect much either.... worst case default on your Loans... your standard of living and dollar drops... and we have Americans trying to make a run for the Canadian border... to find a better living....
