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[–]er5bhneabherg 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

Yes everyone loses. Debt holders do not get repaid, the idea that China would start a war to get it back is uneconomical. But workers do lose their jobs, because debt is not a static thing, it always needs to be borrowed to maintain a modern business. Once it pops, the money to pay people is just.. gone. Then services and logistics go with it.

Maybe no one here is interested, but CFR partnered with Vice to make a fascinating video about the 2008 crisis and floating of debt to absorb the "toxic assets", which was eventually repaid, in the form of a weak profit on a non-guaranteed stock grant. Weak politics but it could have been worse.