A single repudiation in response to hostile acts, which occurred once in 80 years will certainly make everyone dump US debt?
I doubt it. Maybe we will be downgraded from AAA to AA, but I doubt we would see more than that. In contrast, China would lose $600-800 billion and anyone else who wants to use debt as a weapon would think twice.
I think you're underestimating the effect of the US pulling something like that. One of the main pillars of the US's strength is the absolute reliability and inviolability of its government debt. Attempting to unilaterally annul that debt, and for such capricious reasons, and I imagine the consequences would be both immediate and profound.
You're misunderstanding something here, the selling off of the T-bills and other US dollar valued assets would be the extent of the hostilities. The rest will take care of itself.
