This is idiotic, yes there won't be pressure to sell but there also won't be any demand at all to buy. Also, why hold US Treasuries if you don't need them? We'll see many countries dump them. China will dump them and with Japan's currency collapse they'll be forced to sell in order to support their currency. Also with the UK going to war where are they going to get the funds to buy weapons?Interesting development. Very interesting......
Paradigm shift really, predicated upon sheer white knuckle desperation IMO.
But the biggest holder of US Treasuries are not foreign countries (they hold less than 25%). The biggest holder by far are US banks, this is what they put your savings accounts into. So if the Americans get poorer and have to live off their savings the banks will be forced to sell US Treasuries.