http://www.ft.com/cms/s/0/d9b8a3c0-1cba-11e0-a106-00144feab49a.html?ftcamp=rss
Belgium has long had heroic levels of public debt and recently an ailing financial system, too. This isn't a surprise, but when you look at a situation where Greece, Ireland, Portugal, Spain, Belgium and possibly Italy are all on the cusp it certainly does make the entire Euro region appear as a fetid turd. Take this together with the fact that Germany is growing increasingly unwilling to engage in bail-outs and that the German public is wondering why they continue to subsidize the weak members of the Euro-zone, it is becoming quite plausible that the Euro area will split apart. For some countries, it's even advisable
Now, while I have not been in the camp that says a run on U.S. debt is imminent, I do think that Congress' bold assertion that we may continue to cut taxes in the midst of a mammoth deficit raises the prospect. As we have control over our own currency, our ability to deal with a potential run is a lot stronger than that of other countries. Clearly, there is no sign of trouble in our bond markets at the moment, but debt crises can set in awfully quickly. Fortunately, we have a Federal Reserve that is able and willing to intervene as needed. Theoretically, if the market really freezes up, they can intervene and stabilize any blips.
By the way, in case you had any curiosity about the outcome of the next Irish election, don't. It won't even be close: http://www.irishcentral.com/news/Latest-poll-shows-continued-drop-in-support-for-Fianna-Fail--113189849.html
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