Krugman has this to say about it:
For those not familiar with how financial markets work, US Treasuries are the ultimate safe asset, used as collateral for everything. Even a hint that some Treasuries might not be honored could bring everything to a screeching halt
Musk and Trump are both in the habit of stiffing people they owe money. If markets even suspect that this habit will extend to Treasuries, God help us
I worry that by keeping our Ship of Theseus from sinking we’re missing out on something way better
We could be, but are also avoiding a lot of drownings that are likely if we try disassembling it while at sea
Yeah, grains have painted us into a corner
Well, you’re in luck. They’re actively scuttling the ship as we speak. Whether you’re going to like the new one remains to be seen. I have a feeling it will be much smaller and is already full.