Quote Originally Posted by dante1 View Post
These two scenarios are not comparable. Yes, they make for a good story but they don't relate at all. The bookie, the real bookie has alternatives he can take without any of them causing financial ruin. He can cut off the player completely because in reality he probably beat him for tons already and doesn't really lose anything, He can put him on a payment plan and regain even more or any other possibility you can think of. However, China or whatever country cannot do much because hurting the US in an financial way will come back and hurt them just as much probably more.

All countries are interdependent on each other, a bookie does not need one individual player
That is certainly true but it is an issue of moral hazard. For the last decade, the US fiscal position has continued to gradually worsen. During that time, yields on 10-year and 30-year bonds have barely changed. Much of that can be put down to Japan and Europe being in an equally deep hole but continuing to bid new debt at a 3% yield gives the US little incentive to reduce its budget deficit.