Three Letters Re: America’s Sovereign Debt Credit Rating and Interest Rate Imponderables

Mr. Rawles,
Thanks for the blog and your books.  I have given several copies of “How to Survive the End of the World as We Know It” away as gifts. I consider it a network fishing lure of sorts, to find like-minded people.

To the point: Another set of dominoes to fall, if the US credit rating is reduced from AAA many pensions will not be able to hold US Treasury bonds, as their bylaws or rules state that they must hold AAA paper.  Unless they find a loophole or change their rules it will be a cascade spiral down.

Regards, – Ray I.


Mr. Rawles:
Please forgive me, but I believe you overlooked one potential scenario in the recent post about America’s credit rating.   Notably the fact that the IMF wishes to install Special Drawing Rights (SDRs), as the reserve currency of choice over Dollars. (There are other links, just the quickest I could find.)    

Both Russia and China have spoken out after the recent debt ceiling “crisis” and called for another reserve currency. 

The chilling statement on the info wars article: It’s probably frustration more than anything else for China,” said Brian Jackson, a senior strategist at Royal Bank of Canada in Hong Kong. While the nation has concerns, “they realize there’s not a lot of options for them out there and so they need to keep buying Treasuries”  

I believe that the IMF will eventually issue SDRs as the “currency of choice” as both the dollar and Euro continue to falter over the next few years. [SDRs] will become the option of choice, and eventually the only option. Just something to consider.   – Rhonda T.


I appreciated your take on the economy.  One thing not mentioned was the role of the Federal Reserve in preventing failed Treasury auctions.  Some estimates are that in recent months the Fed has been the purchaser of up to 70% of Treasury bonds.  This will obviously go on until it can no longer be veiled from the world.  Then comes the hyperinflation via unlimited dollar printing and then total dollar collapse.   I appreciate your site!   – D.W.