Submitted by: Francis Soyer
Not alot to talk about these days. The Greek debt issue as far as I can recon is a side show intented to divert attention away from the facts that the U.S. is still in a state of defacto default with a deadline approaching of 8/2/11 to either raise the debt ceiling or begin defaulting on U.S. treasury payments.
If a debt ceiling comprimise is reached, the size of that package by lets says 2 or 3 trillion will do little more than buy Geitner 12 months of time to avoid bouncing checks. Yes the debt is that big and the force of compounding interests on that debt 16 or so trillion is so massive that next year Geitner will be asking for an additional 5 to 7 trillion to avoid bouncing checks for the next year. Even with draconian austerity measures of multi trillions a default or total collapse in value of the USD is a dead certainty. To understand more about the mechanics of how that works visit: http://www.chrismartenson.com/
In the meantime while the fed and their clepto banking freinds crash the equity markets to build political will for the next QE program or whatever they decide to call it expect sideways movement in precious metals.
