It will have a domino effect.
Who will trust US government then? Who will use US dollar and invest in US treasury bill and securities?
Who will trust US government then? Who will use US dollar and invest in US treasury bill and securities?
That is conjecture. Land grabs happen all over the world in a varied number of scenarios without destabilizing economies. Securities each have their own markets, but let's focus on the mortgage bonds.
How the US govt deals with the owenership of real estate is not directly tied to mortgage bonds on those properties, as long as the interest continues to be paid out or off. Eminent domain is a power and I'm not sure how it's use affects these bonds directly without provisions about dissolving them. In such a bold move, it's presumptuous to assume the federal govt wouldn't know the consequences beforehand (eg bank bailouts).
US is different, here private property rights are part of the constitution and can't be taken away for social good like in some European countries.
Constitution is like a set of beliefs, if beliefs are changed, suddenly country loses its identity as beliefs are inherent part of it and then people will have hard time trusting new country.
That's... not at all true.
https://en.wikipedia.org/wiki/Eminent_domain_in_the_United_S...
Hell, it doesn't even need to be for social good.
At the end of the day the US dollar's strength is tied to the us political and military and economic power, not their trust worthiness.
I trust that the us will us it's army to ensure the value of the dollar stays strong globally.