Comment: Wrong.

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In reply to comment: Frustrating.... (see in situ)

Wrong.

The government owes the debt. You act like there isn't going to be a victim here and there is. It's everyone who owns the debt assuming they would be paid. The government will default on those people. Sure many of them are Chinese, as if that makes it ok.

The situation is as simple as this. Party A (the government) borrows money from party B (sovereign debt holders). Party A then insists Party C (the people) repay the money.

In your scenario, Party C refuses. This is moral.

Party A then, having no funds of it's own defaults. Party B is screwed. IE every person whose 401k, or retirement plan owns treasuries as assets.

I agree this should be done, but don't pretend there won't be victims here. It should be done, because it will prevent more people from becoming victims. It should be done because not doing it will make it worse when it happens on it's own.