The EU aid package of almost one trillion dollars had to be increased 7-fold in one week to hold off speculators. This is not a sign of strength. It's a sign of weakness.

The markets are now increasingly wary of sovereign debt and are ready to strike at any vulnerability. This is always so when predators smell blood. It is no different in bond markets. In fact, it is even more so.

The cost to the governments will end up as more government liabilities, liabilities that will force  government balance sheets to reflect increasing deficits, deficits that are already causing investor concern. The addition of one trillion dollars in debt  only adds to the problem. It does not solve it. 

 The debt crisis is accelerating. It has only been delayed. 

 Good luck,

Darryl Robert Schoon

www.survivethecrisis.com

www.drschoon.com