What most people don't realize is that the reason the federal government has and is constantly acquiring more land is because those lands are used as collateral for the national debt. This was necessary when Nixon put the last nail in the coffin by completely un-backing the dollar after Johnson eliminated silver coins. All state owned lands are not collateral.
Just like in any corporate bankruptcy or default, the creditors seize your land and assets. This is not the first rodeo for these bankers.