>>The great fear a generation ago was that the USSR was acting as a perfect debtor to build up such massive loans that their planned default would topple the western money system - "sorry Mr Capitalist banker, we cannot afford to pay your interest, or the principal for that matter... oh yes, and we've decided to re-organize our currency as well: 10,000 Roubles is now worth one red Rouble." Of course it never happened. While I'm not advocating that the US follow the same path as the USSR as it broke up, what will its creditors do if the US builds up mega-loans then defaults and inflates the dollar to a new O'Dollar? At least then you'd have the satisfaction of knowing that people who "hate" you have a reason. ;-)
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>Maybe the U.S. could call in all of the loans it has forgiven to other countries over the years?
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>And get back all of the money it gave to other countries?

Sure, but what happens if China, India and Saudi Arabia on their turn wants to cash their loans ?