Krugman has this to say about it:
For those not familiar with how financial markets work, US Treasuries are the ultimate safe asset, used as collateral for everything. Even a hint that some Treasuries might not be honored could bring everything to a screeching halt
Musk and Trump are both in the habit of stiffing people they owe money. If markets even suspect that this habit will extend to Treasuries, God help us
I disagree with that author, this is definitely one of the craziest things seen in recent days. This is on par with going to war with Canada as one of the quickest ways to speed run the demise of the US… It probably would be quicker. Debt can be downgraded overnight, war takes time.
Betting Putin told trump to just take whatever and he’d back trump…if trump lets Putin take Ukraine and the rest of NATO down with it.