U.S. More Likely to Default

We have been writing about Ponzi schemes for some time now.  Saying how Madoff and others have been a foreshadowing of the collapse of the largest Ponzi scheme EVER...the U.S. Government and its interaction with the Federal Reserve.

Today we find this headline;
U.S. at Risk of Default as Cost to Insure U.S. “Ponzi Scheme” Against Default Rises Sharply

While most of the focus has been on Greece and Eurozone sovereign debt issues, the not insignificant risk posed by a U.S. sovereign debt crisis increases by the day. The risk of a US default continues to rise which can be seen in the sharply increased cost to insure U.S. sovereign debt.


Risk of a U.S. default can be seen in the credit default swap (CDS) market. 1 year U.S. CDS has risen from 23 to 37 or by 60% in the last six trading days (see chart below). According to this measure, the U.S. is now more likely to default than Slovenia and Indonesia in the next year.

In the more liquid 5 year U.S. CDS, the cost to insure has risen by some 50% in the last week. The U.S. is considered more likely to default in 5 years time than South Africa, Malaysia, Panama, Brazil and Colombia.

The squabbling between Democrats and Republicans last week as the U.S. debt ceiling of $14.3 trillion was being reached did not help sentiment towards U.S. debt.

Nor did former Soros’ partner Stanley Druckenmiller, the billionaire former-hedge fund manager and legendary investor, comment in the Wall Street Journal that the Federal Reserve’s bond purchases are a fraud and a “Ponzi scheme”.

See it here; http://news.goldseek.com/GoldSeek/1306414800.php

Did you catch that??  The USA has more chance of defaulting on their debt payments in the next 5 years than South Africa, Malaysia, Panama, Brazil and Columbia!!  Are you even kidding me??  Panama!!??

Holy squander!  How sad.  We were called to be salt and light.  This nation was blessed because we blessed Israel and we had a high percentage of Holy Spirit filled citizens.  But as a nation, we have done EXACTLY what scripture warns us NOT to do.  We are perishing for lack of knowledge and for worshipping false Gods and for being disobedient and most recently, for our president suggesting that we divide God's land....end of story.

Jesus, please come quickly.  I'm kind of a wimp and pretty sure I don't want to be around to see this great nation implode.  I'm almost positive the 50% of us who rely on government programs like Social Security, Food Stamps, Medicare, Section 8 housing, unemployment benefits, etc...  will not take it well when these programs start to bounce their checks.