Brace for impact

First of all, i wish to explain why the title Brace for impact. Brace for Impact is an expression used in the airline industry, when the pilot of the plain foresees the imminent crash of the plain and has no means of stopping it. Which means, at no given time he has the capability of reversing the airliner accident.

I want with this title distress what has been happening with the financial markets, the sovereign debts and to the most of the worlds economies as a whole.
In my opinion, we have yet to see to full impact of this deep and enormous financial and economic crisis. This is perceived to to be a lack of trust between the financial agents in the market, but for me the truth lies even deeper.
What started out to be a financial crisis, with the sub prime mortgage and that then was followed with the bankruptcy of one of the biggest investment banks in Wall Street, Lehman Brothers, has been evolving is to one of the hugest challenges ever known to mankind.
After this event we became aware of the sovereign debt of some European countries like Greece, Ireland and most recently Portugal. But more dust is hidden under the rug as also Italy, Spain and even the United States and the United Kingdom pose the serious threat to the system collapse. Indeed, the euro zone's aggregate deficit and debt levels are healthier than America's.
This because to an effect called GLOBALISATION.
This is the word and act responsible to what's being happening thus far. The interconnectivity between major players in the markets poses a very serious systemic risk to the whole global market and capitalism as we know it.
America's debt is supposedly the world's safest, backed by trustworthy courts and an unrivalled capacity to raise taxes and print money. Yet thanks to a quirk law, talk of default is not confined to the European side of the Atlantic. American congress sets a ceiling limit on how much the country may borrow and if a deal cannot be reached before August 2nd the Treasury says it will be forced to default.  
 America's only known instance of outright default (other than refusing to pay debts in gold in 1933) occured in 1979 when the Treasury failed to redeem $122m of Treasury bills on time. It blamed unprecedentedly high interest from small investors, a delay in raising the debt ceiling and a word-processing equipment failure.

This dillema is summed up by Keynes adage: "If i owe you a pound, i have a problem; but if i owe you a million, the problem is yours."

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