If everyone thinks the US T-note is such a safe item that they're willing to take a negative yield just to hold it, maybe it's not safe at all.

What happens next is frankly anyone’s guess, and how financial markets respond is quite clearly another guess.

There's still a financial crisis simmering in Europe. Yet, with all the market headlines from the past week, it is almost possible to forget that the Euro-region is still struggling to halt the spread of fear.

The yen advanced against the greenback this week as traders sought refuge amid mounting concerns that the US may default for the first time in the nation's history.

The British pound fared mediocre over the course of the week, losing ground against most of the major currencies, though finding strength against other currencies.

The Canadian dollar lost ground as economic activity unexpectedly weakened in May, but the loonie may regain its footing in the week ahead as growth prospects improve.

The US economy is sinking into a deeper Great Correction.

According to the papers, investors are on the edge of their seats. They're waiting to see what happens in Washington. Everybody knows that a default would be disastrous.

The politicians can't get together and make up their minds.

It is interesting that the EUR/USD is circling unchanged this morning while spot gold price continue to climb in reaction to the ongoing impasse in the U.S. debt ceiling debate.