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——no one will lend to us for a generation.”

Is this a bad thing?——

That’s my point.

——The riots and millions of deaths from competing roving bands of thugs concern me a smidgeon more than the ability to go into debt again.-——

It wouldn’t be that way at all. Look how quickly countries rebounded from WWII. The recovery would be comparable.

Why? First, foreigners hold a percentage of our debt. Repudiating that debt costs us our credit rating —a good thing.

The rest of the debt is entitlement IOUs. In practice, the elimination of entitlements would force families to come together —to live together intergenerationally— generally a good thing.

I have family in Poland, and I saw,the country reboot after communism. All it takes for people to succeed is the rule of law, and for government to get out of the way. There won’t be pandemonium.

What we have to fear is hyperinflation, which impoverishes everyone without reducing spending, or austerity, which postpones default or inflation.