Submitted by Tyler Durden on 02/14/2012 07:57 -0500

Safe haven demand for gold continues due to concerns that Greece’s “bail out” is yet another short term panacea and Moody’s downgrade of various European nations’ ratings have reignited contagion fears.

Greece is but a small pebble in the pond when compared to the huge levels of debt seen in Japan, the UK, the US. The Moody’s downgrade may cause ripples in markets which could lead to waves which could coalesce a tsunami of financial contagion across Europe and much of the world.

While all the focus has been on Greece in recent days, the global nature of the debt crisis came to the fore yesterday and overnight. This was seen in the further desperate measures by the BOJ and Moodys warning that the UK could lose its AAA rating. Some of us have been saying for some years that this was inevitable but markets remain myopic of the risks posed by this.

Possibly the greatest risk is that of the appalling US fiscal situation which continues to be downplayed and not analysed appropriately. President Obama unveiled a massive $3.8 trillion budget yesterday and he is to increase Federal spending by 53% to $5.820 trillion by 2022. Original source here..

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