No one knows what would happen. That is unprecedented. There would be mayhem in financial systems as all types of collateral is vaporized. All types of on paper net worth would collapse towards zero
It's be unprecedented for the foundation of the contemporary financial system. Argentina defaulting on their debt is very different than a country which every other country, and their banks hold bonds from since it's deemed the safest investment possible.
It would eliminate the notion of the USD as the basis of foreign trade across the world, almost all of the finance system is supported by the USD being the safest investment available.
