But it's already a de facto reality. If the US ever defaults on Treasury bonds, we will be transferring title to large tracts of government-owned western land to foreign bondholders to make good the loss. If that tacit understanding weren't already in place (with a wink and nod governments), I doubt that foreign governments would be continuing to buy as much US paper as they have in recent years. They aren't keeping our economy afloat out of charity.