We can’t go bankrupt, or even default, as long as the debts we owe is in the form of what we have a printing press for. We’ll simply debauch our currency. I suppose that’s a form of default, but there isn’t a damn thing any of our creditors can do about it. I believe we’ve actually been doing this over the decades anyway.
100 years ago, a large family could pay the mortgage on a good sized home with only the man of the house going off to work while the wife stayed home and took care of things. Try getting away with doing that now. The father alone would do good to keep the lights and water on, while putting food on the table for that large family.
And what happens when the creditors refuse to loan us any more money? How do we make up for the trillion and a half annual deficits?