“Repudiation” is not a word used by the political mainstream. Part of the reason is who holds the debt. China is often castigated as the largest holder, but that country actually accounts for less than 8 percent of the money America has borrowed. On September 4, FOX News reported, “Fully two-thirds of the national debt is owed to the U.S. government, American investors and future retirees, through the Social Security Trust Fund and pension plans for civil service workers and military personnel.”
The United States is unlikely to repudiate money “owed” to itself. Nor will politicians voluntarily commit career suicide by reneging on promises to grandmas, civil servants, and veterans. That leaves few choices.