The Political and Economic Aspects of the European and US Debt Crisis

Ironically the US Treasuries always gain strength in an uncertain economic environment, despite Credit downgrading of the US Treasury bonds. Why? The US Treasuries, despite some serious Debt implications, are still viewed by the Markets as much safer and risk free instruments. In my opinion, the European debt issue is far from over – there are some countries which have over-leveraged Debt to GDP ratios; Portugal, Spain, Ireland, Italy to name few.