Zeev's Turnips Patch-No Politics (ZEEV)

[Smart_Money]

Reuters is reporting that Finance Ministers from the US and its G-7 partners will hold a number of conference calls Sunday to discuss US debt in light of Standard and Poors’ decision to downgrade US debt. The European Central Bank will also hold an emergency meeting on Sunday about its own sovereign debt crisis in Italy, Greece, Portugal and possibly Spain as this major credit crisis develops.

“I think we are in treacherous waters. What are France and Britian (and G7) going to discuss this weekend? They used to hold dollars. They were looking to us to solve our problems and lead by example and we just got downgraded,” says Joel Smolen, fund manager at Axion Capital in San Rafael, Calif. “Where else are they going to turn?”

http://blogs.forbes.com/kenrapoza/2011/08/06/after-us-downgrade-this-could-get-ugly/?partner=yahootix

As expected, the debt downgrade is serious business and calls into question the role of the US dollar as the lead world reserve currency.

The American investing public is the largest holder of US debt through mainly through fixed income and money market accounts.