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
Every avenue they are speed running self immolation. I’m pretty convinced they want to burn this country down so they can rebuild it in their images. A narcissist and foolish lot. We won’t be able to weather this storm. Other nations aren’t going to just sit by while we’re down. Somebody will take advantage of the situation but it isn’t going to Trump, Musk, Thiel, et al.
Burning the US down to divvy it up amongst themselves so they can run their own little technofiefdoms is all but their stated goal. They’re talking about network states and crypto-resever currencies, and salivating at the prospect of having entire populations that they control outright to be the grist for their techno-futurist fantasies of being the sole owners of the cyberpunk dystopian mega corps.
“We are proud to announce that we have created the Cyberpunk future from ‘Please Don’t Create This Cyberpunk Future’.”
It’s really difficult to tell to what level and for what end they’re trying to collapse the country. Is the goal just a grift? Is it to secure permanent corporate governance? Is it to collapse the US for techno feudalism? Is it to utterly annihilate the US on behalf of a foreign nation? All of the above by different individuals?