US To Buy Greece for $400 Billion?

One of the Lear gold experts coined the phrase, "I can give you the longitude and the latitude where a hurricane can strike, but I can't make you get out of the way."

For most who understand the potential of debt to destroy an economy, indeed an entire country, what's taking place today in the markets should come as no surprise.For the first time the world is finally facing the possibility that Greece is going to default on its debt.

As I got word of today's market activity I tuned into the markets to see what was going on.I'm not sure how many times I heard it but the point was made more than once that Greece's little debt problem was nothing compared to our own.At one point the Dow was down 1000 points.

I then harkened back to what I heard this morning regarding municipal bonds and the dire condition many of our own municipalities face in trying to keep the lights on.When the question came up as to who gets hurt in the event of failed munis, the answer was "the rich" of course.And then the thought was put out there that this could end up being one way to make the rich play a bigger part in eliminating debt.It was even likened to a tax.

Well I'm here to tell you that it isn't just the rich investing in munis.I don't even want to guess, but I'm thinking there are hundreds of funds with not-so-rich people's money in them that are invested in a basket of munis.And what happens when one municipality defaults?The dominoes fall.

On a global scale, Greece could be the first dominoe to tip over.It's incredibly ironic.Greece's debt is some $400 billion and if my numbers are right each 200 points lost on the DOW represents about $350 billion of lost Market Cap.Now, what do you think all the geniuses in government and on Wall Street would say to this recommendation?

We should print $400 billion and buy Greece.Just make it our 52nd state after Puerto Rico and be done with all this.Europe would be off the hook along with the Euro.It seems the more money we print the stronger the dollar gets anyway. So while the dollar gets stronger we just keep buying all the countries that go into default.Spain #53.Portugal #54.The UK?We can get 4 states out of them.

Then we can inflate the dollar to any level and it doesn't matter.Soon there will be only one currency and then of course precious metals.The one world currency in this scenario would be the dollar and it would inflate so high that $2000 gold would be a distant memory as they would have to re-invent the gold charts to accomodate such big numbers.

Surely I jest, but my point is, today's market volatility should come as absolutely no surprise and this, in my humble opinion, is just a taste of what is ahead.One number I heard was that the world was more than a quadrillion dollars in debt.That's a $1000 Trillion.Now look at the damage just $400 billion is doing to every market in the world.

What would surpise me is if gold demand doesn't triple by tomorrow, as central banks, brokerages, China and everyone with any cash gets in line to buy gold.At this moment the spot gold price is up $30 and silver is just up a dime.Gold is showing that it is the king of inflation hedges.I suspect silver will follow.Greece! Whoda thunk it?