Last night I was watching Sky News (satellite TV) for a short while and saw their relay of CBS News from the USA.

One story which made my ears prick up was that if some sort of agreement is not reached between Democrats and Republicans, so that some sort of financial cap limit can be raised, then in less than one month from now the USA will default on its debts.

This morning (Weds 6th July) the London Daily Telegraph newspaper's Business section has as its headline a story suggesting that the recent bailout of Greece is making life harder for Portugal, whose credit rating has been lowered and may also need another bailout.

In simple terms, in addition to Greece, both the USA and Portugal are teetering on the brink of defaulting. This does not mean that they will default, especially as fearing the loss of valuable export markets China seems to want to help out financially (albeit at what long term cost?)

Meanwhile, recent reports from Iceland suggest that having defaulted several years ago things are not 'as bad as' they could have been and whilst still challenging life still continues.

The wild card in all this could prove to be the cost of dealing with geophysical upheavals pushing nations over the brink. The next quoted date for something to happen because of Elenin is tomorrow, 7/7/11.

Simon