(2) As a result, automatic cuts required will cause a political crisis. Moreover, this "automatic function (will) generate major disturbances in the functioning of the state system" because it amounts to executive and congressional abdication of decision-making authority.
(3) Other credit rating agencies will join S & P in downgrading US credit. Diversifying out of Treasuries will follow.
(4) Federal Reserve money printing can't go on forever. At some point, it'll have to resort to jawboning and market manipulation, but those tactics have short to intermediate-term shelf lives.
(5) America's debt will keep increasing dramatically "as tax revenues are already in the process of collapsing..."
(6) Like his 2009 jobs plan, Obama's new one won't work even if Congress approved it which it won't.
The combination of the above elements "will trigger (a) major financial shock," perhaps much greater than in 2008.
Financial expert and investor safety advocate Martin Weiss agrees, saying:
"We stand on the threshold of one of the most dramatic financial disasters of our lifetime."
Greece's imminent default "threaten(s) the largest economies in the history of civilization - the European Union and United States."
Financial analyst Claus Vogt believes growing numbers of German politicians and European central bankers realize "Greece is long past the point of no return."
It's bankrupt but hasn't said so. Soon enough others will. It's not a liquidity problem. It's a solvency crisis too far gone to fix.
All the bailouts and quick fixes piled on more of them won't put Greece back together again. And behind it comes Ireland, Portugal, Spain and Italy. It's just a matter of time.
In fact, Greek default alone is more serious than Lehman's 2008 collapse that triggered market mayhem. It's because Western banking and its entire financial system never recovered, so is much more vulnerable to economic shocks now than then.
Even though G-7 countries promised to save weak ones, who'll save them when they fail? Who'll save America, especially Main Street mired in Depression with baked in the cake austerity assuring worse ahead, not better?
Already credit is tight. Expect further tightening with interbank lending freezing up at any price. Private credit markets also with small and intermediate size businesses as well as consumers unable to get loans.