The debt crisis is being played out publicly in Europe, and the play is country by country in the Euro Zone. The recent debt negotiation by Greece with its creditors was not enough to stave off any additional crisis in the short term. Spain's issues are now coming to the forefront in the sovereign debt crisis. Recent bond offerings by Spain have been received poorly. Refinancing of Spain's debt is essential to keep the country solvent in 2012, and the poor performance of Spain's bond offerings have moved this country solvency to the forefront. What does debt do in a society like Greece or Spain? Are we seeing the same impact in America? When is the tipping point for Europe and America? America is the world's reserve currency and dominates the world's financial system, and we are able to kick the debt can along longer without consequences being realized quickly as in the Eurozone. Basically, America can print more money if needed. It is unwise but a tool at the country's disposal. … [Read more...]