I didn't really understand that whole part of the analysis, since the event being described is highly inflationary, which should make repaying debts easier rather than more difficult. Perhaps I missed something, though.

Undisciplined

Ok thanks: he's talking about the [internal or state liabilities](https://californiapolicycenter.org/california-state-and-local-liabilities-total-1-6-trillion/), that are separate from the federal debt. In that sense, the debt load is only ½ of CA GDP (federal liabilities load is 128% of the US GDP). So I don't see why it's that significant?

sancristrader

econ

Can America Survive Global De-Dollarization?

I don't think that's what the author's saying. That part is about the individual states being in debt and potentially needing to be bailed out by the federal government. I don't know if it's true that CA has half a trillion dollars in state debt obligations, but that's the claim.