No, you don’t see. 
It is happening before your very eyes, right now!!
You have to wake up to the fact that FRN fiat is going to zero. 
That is a default.

Rothbardian_fanatic

I see. 
It hasnt happen in my lifetime, yet. 

Satosora

The debt goes to zero and the collateral gets scooped up by the creditors.

What happened to the debt after the default?

cryotosensei

econ

No, 60% of Americans aren't "living paycheck to paycheck".

tomlaies

Yes, indeed it can. It has defaulted at least thrice before, 1871, 1933 and 1972 or 3 by Nixon. The state may have defaulted around 1812, which may have been a major cause of that invasion. Thanks to the Russians, we were able to do something about the British, then.