Apparently America can not handle blame. Fault is never owned here. It is always an outside force that causes the problem. Interestingly Europe is beginning to blame the US, so I guess it is just the nature of the status quo now. Either way, the game is almost over, and people can not handle the problem.
The news is reporting that today's equity downturn was caused by Europe, when any able minded individual should understand the problem is the system. The system. The system is the problem.
There is no difference between the European system and the US system. They are the same. Greece needs to pass austerity, for a bailout. California needs to pass austerity, for a bailout. Here we point to the fact that US bonds are low as evidence for demand, but the Federal Reserve is buying all the bonds, which negates that theory. In Europe the ECB has been stepping in and buying the Greek bonds. It is the same solution to the problem.
This weekend may be the weekend where a European country implodes, and it looks to be Greece. If that happens all European banks will be affected directly, and because of that the rest of the world will suffer. If that happens, European investors will turn to the Euro instead of the bonds, Jim Rogers has already recognized this. I recognized it months ago, as I started saying that when Europe implodes, the EUR/USD would go to $2.00.
This in part is because the dollar is weak and will get weaker. Obama's "Jobs Program" will spin $4.47 trillion after the banks use fractional reserve lending to spin the loans. Bernanke will use new tools to monetize the debt.
Also, the Swiss have backed the Euro. This may have been stupid, but it was a monumental decision. The Euro is not strong, but it looks to take the benefit of a European collapse. Of course, the major beneficiaries are precious metals and other commodities. Look for precious metals to sky rocket from here on out.