I know what it means and your personal attacks at me over my humerous post reflect poorly back on you not me. I'm going to respond to your post though it's out of the boundaries of this thread because it's an interesting topic.
One of the offsetting factors you speak of is called collateral (of which there is a great many kinds) but typically what countries do when they get into serious debt trouble is increase the money supply to pay off creditors (usually by issuing and then buying their own bonds if they can't devalue their money like we did in 1933 during the Great Depression) and reduce spending (if possible).
If their backs are to the wall, they default. Russia defaulted all debt to all creditors in 1998 and had a very speedy recovery and economic boom afterwards posting gains and surpluses [having oil and no debt is a powerful combination] but nicked themselves in 2008-2009 with all the Georgian sword rattling and threats they engaged in (politics can get in the way of one's success) upsetting everyone including their customers.
Anyways, while there's always risk in every investment (whether valuation or debt), even if it's miniscule, default doesn't result in Dawn of the Dead sequels with people running around cannibalizing each other all over the country like the doomsday prophets promise to sell their books.
What really happens is very simple: nations restructure and start over without the debt.
For example, Latin American countries in crisis during the 1970's and 1980's changed their economies to that of producer exporters and paid it back right before having to default while Denmark did default in 1813 but changed their economy to a producer trading model and despite levying high taxes to support their very high standard of living, realized excellent economic growth and today have a mixed economy with a flexible labor force ranking 16th in the world in terms of GDP (PPP) per capita and 5th in nominal GDP per capita.
While there are consequences to defaulting (especially in the ability to borrow) and the news acts like its the end of the world everytime nations do it, the act is also an opportunity to restructure across-the-board and chart a course to success (admittedly something that should have happened before they ever got themselves in the position of default).
Success is the goal never failure and default. However, it's not the end of the world either friend as the doomsday authors would have you believe.
Now people always want to assert, at this point in the discussion, that we live in a new age where everything's totally interrelated and like a stack of dominos if a country defaults everything tumbles down into ruin and that's the end of the world.
But it's just not true. Trade, international financial markets, and globalism have been around for a long time and even our modern iteration has been around since the formation of national stock exchanges in the 16th and 17th centuries.
Today they comprise the International Monetary Fund and Bank for International Settlements, national agencies and government departments, central banks and finance ministries, private institutions acting on a global scale, regional institutions, the Eurozone, the emerging Chinazone, etc...
There's been cataclysmic legendary empire failures, sweeping plagues, global economic depressions, world wars, disasters, etc... throughout human history and will be again in the future.
Nations and blocks of nations will compete against each other for economic and political supremacy and there will be winners and losers. The biggest losers will have to restructure and start over as they have since time immemorial and as long as they don't nuke off the planet; there will always be the opportunity to start over just as before toward success in this world even if it investors who took a risk lost their investments on the way down.
And that really was my point. I could go on but I want to watch a movie. Peace.
A fractional reserve means there's no true standard (precious metals) to issue currency at face values. Money is borrowed into existence and leveraged against good faith and other offsetting factors. There's much more, but your assenine mockery shows it would do little good to expound... just as I said.
There certainly isn't enough money to buy you a clue in regard to this matter. Proceed with your current understanding.