The Chinese central bank for example holds over $1T in US Treasuries.
In the event of a war between China and the US, could the US simply repudiate this debt?
What would be the consequences of such a move? Would it be possible, legal, feasible, and/or useful?
Might such a move be considered non-credible? (I am thinking that for example, it may be that everyone presumes that when the two countries return to peace, the US will eventually meet those debt obligations regardless of what it says during the war -- and hence, any such repudiation would be non-credible.)
Is there any precedent for such a move?
And in the light of this possibility, is the Chinese central bank in fact paying an implicit premium for US Treasuries (as compared to say a friendly country like the Japanese central bank)?