> > why would they want to default on their debts

> So they don't have to share the AI profits with foreigners who hold shares in the AI companies.

They can do it now. They don't, because it's not worth it. It won't be worth it in the future either. They'll have yet more to lose. Especially in this hypothetical scenario where their massive AI exports are what's paying for their economy – good luck getting your counter-parties to pay for your exports after you have decimated their economies and soured relationships over a one-time boost that will cover what, a couple years of US government spending at best?

> The USA has managed to dominate software for decades now. Why would it change? Take a look at the current datacenter investments in the USA vs other countries. It looks very much like the USA will even extend its lead.

- Because USA managed to dominate other industries for decades as well, only to lose them for one reason or another?

- Because China has shown its ability to dominate in other complex modern industries like EVs and drones... and software is not special, and they're already starting to out-compete US with cheaper open-weight AI models?

- Because trust in America has already shaken, and work to get off US software in other countries has already started, even if it's slow and will take a long time?

- Because the contents of datacenters have a useful life of only a few years, and over-spending hundreds of billions on first-generation inefficient datacenters may sooner result in a financial crash wiping out most of the industry, than build a meaningful long term moat?

- Because US doesn't even produce the chips that power said datacenters, whereas China, their main geopolitical competitor, is working full time to develop their own chips, while militarily posturing against the island next door where all America-bound chips are made, at a time when US ability and will to do anything about that seem to be at an all-time low?

- Because after enough iterations, the AI race may eventually boil down to in large part to competition on the cost of electricity, in which US is at a disadvantage?

US is not going to willingly default on its debt or violate investors' property rights. That's just a fantasy that got nothing going for it.