And it makes the American dollar the world's currency and it adds to our prestige in the world that we have that. It also shores up the world economy. As you mentioned, If we had defaulted on the American debt, interest rates would go up immediately. They could have gone up 5% or more. Why? Because we all know interest rates have to reflect the risk of non repayment of a loan. Of course. That's why if you have a bad credit score, you pay higher interest rates to get a loan. (07:42–07:51)
CLAIM
Asserts that defaulting on the debt would cause interest rates to rise significantly.
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