What does defaulting of a country means and what follows next?
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Defaulting on debt means that they do not pay some of it back when it is due. A country have debt in form of bonds. These are called government bonds, treasury bonds, liberty bonds, war bonds, and many other names. Some of these bonds are sold abroad but not many. Most of them end up being sold to citizens who are looking for very safe investments. You can buy government bonds directly if you want but in general the money you pay to a savings bank account, insurance company, pension fund, collage fund, union strike fund, etc. then most of this money will be spent buying government bonds. Either directly or indirectly it ends up getting owned by mostly middle class citizens. Rich people have enough money to invest all of their cash in stocks as they will still be wealthy in case of a market crash. And very poor people do not have money for any government bonds.
So if the government defaults on its debt the first you will discover is that your paycheck might be late or end up bouncing. The companies likely bought bonds with the money set aside for the wages but now the government will not pay the money back so they can pay their workers. You try to withdraw money from your bank account but does not work either as the bank is also waiting on the government to pay out on the bonds. Generally it does not look good for the economy in the country.
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