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Municipal bonds held by households, 1 trillion.
Of course, the Treasury could also refuse to honor the bonds held by foreigners.
That, in turn, would dilute the value of the U.S. dollar-denominated bonds held by the Chinese and other investors.
The bonds held by Social Security are backed by the full faith and credit of the U.S. government.
Among them are savings bonds, bonds held by other nations, long-term bonds that do not mature until after 2011, and special bonds held by state and local governments.
The debt relief is mainly from profits on Greek bonds held by eurozone banks during the crisis.
In a technical sense, this is true: the "assets" are government bonds held by another branch of the government.
This would reduce the value of the huge amount of bonds held by banks, further damaging their balance sheets.
"We are also examining other alternatives such as early buyback of Brazilian bonds held by the Portuguese government".
Peterson and his followers apparently want the government to default on the bonds held by the Social Security trust fund.
Most debt instruments, such as loans extended by banks or corporate bonds held by investors, can be thought of as baskets that could potentially involve several risks.
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