Yabby,

You seem to think economic woes are all down to the Euro zone. The U.S. have worse fundamental data than many of the standout debtor countries in Europe. We hear of Greece and Italy which have sovereign debt as percentage of GDP at levels higher than 100 percent (Greece's is around 142 percent,Italy-119). Portugal and Ireland are often mentioned also, yet Belgium has worse figures than both.

U.S. public debt has reached 100 percent of GDP - so it's worse than most countries in the Euro zone..

Here's a peek at Euro sovereign debt.
http://edition.cnn.com/2011/BUSINESS/06/19/europe.debt.explainer/index.html

And this is interesting...
http://www.usdebtclock.org/

Yabby is a supporter of Americas current Presedent, so am I.
He in my view, is both on to some thing.
And victim to it.
America fell for a Movie made in real life, a propaganda one.
In America public opinion, much like Australia, is a Movie in the making.
America put Republicans, TEA PARTY ones, in control.
Driven by power influence self interest, and a smattering of blind herd mentality America and Australia, forget the real need for real self interest, of the whole country.
Arjay, shouting will not change our view.
In a truly Bizarre way, you walk around true CONSPIRACY to find one while related not the true problem.

gabby..quote..""At the end of the day,
profits from Reserve Banks
land up back with Govt treasuries.""

oh goodie
SO when we bailout bankers
tha govt gets its slushfund?

mate your full of it

we used to have a safe in the treasury building[in qld]
its now a casino...[so where does all this fair share go to now?]

but your opinion
in lue of proof..knows no bounds

""There
are good reasons
to create seperation between politicians and the
printing press.""

and now we got even better reasons to sepperate bankers from it...!

but hangon...i thought govt got its fair share
how did the bankers get it all..!

""Imagine the pork barreling, if that were not the case.""

yeah imagine if you could issue all the coin notes and credit
as you chose..and when EVEN THEN ,..you loose
you get the govt to issue a bailout/bond
turn it into fractional reserve...
and print of lend even more money

KNOWING the mug voters...*cant stop you
cause you mr banker..control govt
not the people..nor elected members
just bankers..who have over lent overspent..and now refuse to even pay the rent

tell me..how come banks bailed out
grece ireland..italy spain portugal

and now govts are bailing out banks
banks own the system..NOT GOVT

bankers get the money lent to greece...GET IT?
a further bailoout...ONLY BAILSout bankers..AGAIN

the people get the debt
and the bankers get the bonus

YOU dont trust govt
WE DONT TRUST bankers..!

betwen bankers or govt
who should be running the fed?
not wolves/bankers

why do you chose to be defending bankers?

Indeed Poirot, Europe is the problem, because the market thinks
things through to some extent and does not look just at debt level,
but how it could be paid back. In fact you'll find that Japanese
Govt debt is even higher, but they have a population willing to
lend them all their money at 0-1%. Not so for Greece.

When the Euro was launched, politicians were warned that having your
economic and politicial ducks in different lines, could lead to
disaster. They took no notice but that is now happening.

We now have a standoff and the market wants to see a solution,
or nobody is prepared to lend countries like Greece any money.

The German public are telling Merkel that they refuse to work hard
and pay off Greece's debts, whilst the Greeks sit around sipping
Ouzo in the sunshine. But Greece cannot print Euros or devalue
its currency either. So should they be kicked out of the Eurozone?

Greece is only the first country involved, Portugal, Italy etc, are
not far behind. Add them together, its a huge problem. So will the
Euro collapse? With nobody prepared to lend them money, it means
that interest rates which they have to pay are enormous, blowing
up any budget. Short of selling a few Greek islands to the Arabs,
there is no easy answer. 27 countries are going to have to agree,
which is hard to achieve in itself.

America's problems will be solved when politicians stop fighting
or after the next presidential elections. Their economy is also
fairly dynamic, their debts are in $, which makes it easy.

So the EU problem is far larger, giving rise to the uncertainty.

Yabby,

There's no denying that the Euro zone has a significant debt crisis.

However, according to this article, "...when it comes to terrifying debt-crisis scenarios, the U.S. stands in a universe all its own."

http://www.cfr.org/economics/time-us-debt-problem-means-global-economy/p24708
(Click for full text of document)

Poirot, yes the size of the US debt is huge, but its all about confidence.
People are still prepared to park their money in US treasuries
rather then elsewhere.

Clinton actually left things in pretty good order. When Bush/Cheney
took over, Cheney made it clear that the US $ was everbody elses
problem and not theirs. So a kind of game of chicken started.
Japan and China kept their currencies low in order to ship more
goods to the US. But that also meant lending to the US. If they
stop lending, their reserves might be worthless, because the
US always borrows in US $, which they can print, not in Yuan or Yen.

Over time, inflation will probably eat a good chunk of it away.

So who would you lend to if you had to choose? USA or Greece?