Debt limits are not really limits. The debt to gdp ratio can be carried to extremes, and I think this is what's in the cards. Certainly the European central bank(or the central banks in concert) will provide the necessary liquidity once the banks have lined up their massive positions in favour of a liquidity drop.

During the depression, debt to gdp went to 500% in the U.S. Japan wound up with a 200% debt to gdp ratio, and kept their gdp up by building as much infrastructure as possible. The actual real limit that should be carefully noted and watched are short term interest rates. A negative interest rate is deflationary, but will likely prop up the gold price, along with massive liquidity injections. Gold is the only money market commodity that can trade on this basis. People are saying silver will react, but interest rates have gone below silver lease rates without much effect. Certainly something to watch closely.

Sorry about the Stockwatch link, I don't subscribe either. Just wanted ppl. to catch the headline, which came on Friday, well after the close.

-F6