What would happen if the USA declared bankruptcy?

Someone was telling me that Lyndon Larouche advocated for America to do just that. I was wondering if China would hold us hostage via virtually all the goods they make and sell to us!

This got me to thinking: could we just re-open all these shuttered factories around the country and start employing all the people who are out of work and tell China to eff off?

We have the technology to power our appliances with clean energy. Even cars are available that are plug-ins. Yeah, they don't go too far or too fast, but they still exist. I just think we need to cut these countries loose.

I really don't know. When such a thing happens to third world countries we write it off.

Bankruptcy means creditors gain control and liquidate/operate/etc. That's a weird thought but we are only doing that in bits in pieces.

Defaulting on US Treasurys? That could happen. Nixon pulled a move like that when he suddenly devalued the dollar, which hurt overseas investor confidence in US treasurys as a "safe haven" and limited our options during his and Reagan's recession. (No investors means you actually have to have a balanced budget: investors want assurance you won't "print" too much money like Nixon did.)

That "safe haven" is the only thing that keeps our Treasury yields low, floats our federal debt, and gives us even the option of a bailout or other economic spending policies. But a big enough bailout, or a lack of confidence in US as a "safe haven", and we would submerge into a huge depression and only emerge as a participant nation instead of controlling our economy as we do.

If the value of the US Dollar collapses, then a house that cost 500,000 USD or about 350,000 Euros--I'm rough estimating current exchange rates--before the crash could literally cost 100,000 Euros afterward or even less than that.

Imagine that happening not just to residential real estate but commercial real estate as well. Foreign firms would come in and buy up everything, and the US will wake up in a land where the landlord lives on another continent.

The laziest way for a country to get out of debt is to follow the Weimar Republic's lead and simply print money to pay the debt off. Of course, the domestic hyperinflation would destroy the US economy, and the Dollar would rapidly lose value on currency exchange markets, but that's what happens when a nation declares bankruptcy.

Technically speaking, a nation can't declare bankruptcy like an individual can. There is no such thing as bankruptcy court for nation-states, but nations can and have defaulted on debt obligations, which leads directly to currency devaluation on currency exchange markets. The other way, as I said, would be to flood the market with excessive amounts of cash driving currency's value down.

What the United States would likely do is what Argentina
did in 2001 - default on foreign held debt.

Argentina went through about 5 years of turmoil then
the economy returned to pre crisis levels.

it would be the end of civilization as we know it.....that it WONT happen because of the dire consequences over the entire world. Other nations have done it and they collapsed totally.