All heavily indebted states like California and Illinois would be debt free. Our children and grandchildren would not have to pay back the enormous US federal government debt. Everyone’s mortgage debt, credit card debt, car debt would become zero and they would own all of these assets freely and clearly. The citizens of the United States as a whole. dollars held by foreign banks around the world, which is also roughly $1 trillion. That would, of course, include any money in checking accounts, savings accounts, money market funds, certificates of deposit, all corporate debt, all municipal debt, and the big, $20 trillion+ federal debt. If tomorrow everyone in the world completely lost confidence in the US dollar, who would lose and who would benefit? Common sense would tell you that of course all people holding any form of debt or demanding payments denominated in US dollars, including the roughly trillions of dollars in US currency, would have nothing but air. It can be exchanged for objective wealth. (96 People Likes) If the world stopped using the US dollar and switched to the euro as its reference currency, would the US collapse?
