All of this is contingent upon the ability to sell IOU’s on the open market; both Britain and Germany had debt auctions in the past few months that failed, leaving them unable to continue living beyond their means. I have no idea what those two countries are to do now, their only solution is to raise the interest rate that they will pay, which of course compounds the problem.

President Obama, and to an extent Pres. Bush before him, don’t seem to get it. Money is not guaranteed, its acquired in the open markets, and those markets recently refused to loan any more money to two similar countries, eventually it will happen here.

And then what?