Except defaulting on the foreign debt would also mean defaulting on the entire national debt. That would pretty much screw up the entire US financial system. O

Except defaulting on the foreign debt would also mean defaulting on the entire national debt. That would pretty much screw up the entire US financial system. Of course, what's more likely is inflating away the debt (i.e., devaluing the value of the dollar, and thus all dollar-denominated assets). There may not be foreclosures, but there will be a clearance sale on US assets. 90% off! Everything must go!