Does anyone think that this is possible? I guess most of us who studied economics and financial risks know that T-Bills are normally default at a beta of zero. But US government guarantees are really hard to be taken for granted nowadays. Anything goes. I guess that would mean financial collapse world wide.
The U.S. Constitution, Article 1 Section 8, gives Congress the power to coin Money and regulate the value. So the government may print money to avoid a default.
The US will never go Zimbabwe's way. Printing money will result in the dollar taking a hammering. The chances of a US default have increased, but compared to others, it is still a very safe place to put your money.