Greece has passed the much maligned austerity package wich will allow it to receive loans from the International Monetary Fund(IMF)
link to complete CNBC story here.. So now it comes to the United States, you may have noticed in the news lately stories on the "debt ceiling" and if you are a not to up on the world of finance and bonds you might not know what it is all about(debt map below).It is very similar to the situation in Greece except we are not dealing with the IMF we are dealing with China and US citizens who hold Treasury bonds in their retirement and everyday portfolios. US government bonds have always been considered the safest place to put your money. That could all change at the beginning of August.
If the US does not pass the raising of the "Debt Ceiling" it could be possible that the US could default on it's bonds which would be the first time that has ever happened in history.This would wreak havoc globally and possibly crush the value of the dollar. That could be great for the stock market as it seems to run counter the value of the dollar.Not good for us regualar joe's prices could rise 20-30% over night. All these things are just possibilties, they are not definitely going to happen but they could. Do some google searches check for yourself, develop your own thoughts.
Riot pic: msnbc.msn.com
Debt Map: jjesusprocess.blogspot.com