I would think that the inability to pay principal and interest would be one of the possible reasons the truth comes out. Would not a mixture of foreign treasuries be safer. This is like saying your house is smoldering make sure you get all your valuables to the attic. Even if they do pay it will be in devalued dollars, not good advice in my mind. I've heard something to the effect that Icelandic bonds were fixed to inflation, also there are a few well run low debt countries out there. Spread it around, do not put all your eggs in one basket/country. Metals, aways good http://canadiansilverbug.blogspot.com/