Tuesday, November 15, 2011 – 01:00 p.m.

The head in the sand mentality continues.

The collapse of Greece rocked financial markets. Then the markets recovered.

The approaching collapse of Italy is realized and the markets dip. Then the markets recovered.

What will happen as Spain, Portugal, and Ireland fall into the abyss.

Does anyone with any commonsense believe that Germany and France will be able to prop up everyone else?

France has its own problems to deal with.

I mean Greece bondholders are bracing for a fifty percent haircut in the value of their investment in what is now being referred to as an orderly default.

Yes, I said 50%. And yes, I used the term default.

The other European Union countries are in no better shape.

What’s amazing here is the countries putting money into a so-called bail-out fund for distressed governments.

The only problem is the countries contributing are using borrowed money.

They key term being “borrowed”.

The spending and debt problem is systemic in nature and needs to be addressed now. Reforms being adopted in Greece and Italy do nothing in the the near or intermediate term to provide assurances the problems are being addressed.

Very few governments of the developed industrialized nations operate on balanced budgets.

Until this happens the problems will only worsen or everyone.

The United States has its own problems to worry about.

This week amount of total U.S. debt will hit $15 trillion, while at the same time a select committee of Congress argues over budget cuts that will doing nothing to solve the current crisis.

The current approved debt limit is $15.194 trillion.

Do politicians around the globe really have the will to do what’s necessary?

The answer: No!

Think about it.