Friday seen one of the worst moments of the 2008 financial crisis played out, part of the European Union defaulted on their debt and with the help of the ECB, World Bank and IMF strong armed bond holders in to accepting massive write offs.

European officials insist that Greece is a one-time deal, not meant to set a precedent for other nations. But it is easy to see that minority parties in debt-burdened European nations could find a demand for relief an attractive platform. Imposing a tax on bondholders rather asking citizens to pay higher taxes while public services are cut might prove popular with voters.

Demands for debt relief could take many forms. Greece has been able to encourage bond holders to participate in the debt swap by enacting laws that incorporated collective action clauses into the 86% of bonds governed by Greek law. These clauses allow super-majorities of bond holders to force hold-outs to participate in swaps. Other countries in the euro zone could replicate this strategy.

Given the nature of the default, and the discount many other European bonds are trading at it is time review your portfolio and cut any exposue to companies at risk due to their Euro Debt holdings.

While the World celebrated the deal for now, the reality in Greece is that the overall jobless rate rose to 21 percent from 20.9 percent in November, twice the euro zone rate.

The average unemployment rate for 2011 jumped to 17.3 percent from 12.5 percent in the previous year, according to the figures, which are not adjusted for seasonal factors.

Youth were particularly hit. For the first time on record, more people between 15-24 years were without a job than with one. Unemployment in that age group rose to 51.1 percent, twice as high as three years ago.

Budget cuts imposed by the European Union and the International Monetary Fund as a condition for saving the debt-laden country from a chaotic default have caused a wave of corporate closures and bankruptcies.

Greece's economy is estimated to have shrunk by a about a fifth since 2008, when it plunged into its deepest and longest post-war recession. About 600,000 jobs, more than one in ten, have been destroyed in the process.

How the Euro Crisis Looks Now

Greece currently the focus of the eurodebt crisis now in its third year, looks to have managed to close on an exchange to effectively default on their national debt and reduce the 206 billion euros of privately held Greek debt by 53.5 percent.

While markets are celebrating the default the real question is, who will be next?

Italy, Spain, Portugal are all marginal economies that will contract under the new austerity sweeping Europe, and may look upon the default in Greece as an easy option to resolve their own sovereign debt issues.

ECB forecasts showed the economy could shrink by 0.5 percent this year and at best grow by a meager 0.3 percent, a slight downgrade of its previous estimate.

Available survey indicators confirm signs of a stabilization in the euro area economy. However, the economic outlook is still subject to downside risks, ECB president Mario Draghi said after the central bank left interest rates at 1 percent.

Greece's largest banks, most of the country's pension funds and more than 30 European banks and insurers including BNP Paribas (BNP) SA and Commerzbank AG (CBK), agreed to the offer.

While Greece would prefer a voluntary deal, the government has said it will use so-called collective action clauses to force holders of Greek-law bonds into the swap if the private sector involvement fell short and it got approval from investors to change the bonds' terms. The Greek government had said it wanted participation above 90 percent and was seeking a minimum level of 75 percent.

This type of action supported by the ECB, World Bank and IMF clearly values Europe's sovereign debt at cents on the dollar and institutions holding or invested in that debt should be writting down the valuations.

How Global Debt Looks Now

This list of countries by estimated future gross government debt based on data released in September 2011 by the International Monetary Fund is the stark reality of the value of physical money and cash assets. The figures are in percentage of national GDP.

Cash is no longer king and the value of most currencies is being eroded which means everyone must rethink their investment strategy and adjust their portfolio holdings.

While many think that if they live in the USA and earn in USD nothing will change, I can assure you that those days are over, growing world wide demand for food, energy, goods and services has an impact at all retail outlets in the USA.

Every investor, institutional or individual must now balance their portfolio based on currency exposure.

The IMF's John Lipsky has warned that the average public debt ratio of advanced countries will exceed 100 percent of their GDP for the first time since the war by the end of this year, and that this debt is unsustainable, risking a new fiscal crisis for some.

The massive sovereign debt problems of the US and Eurozone also clearly run the risk of sharply increasing future inflation as their currency wars export inflationary pressure around the world.

This will result in real investment losses in long-term fixed interest bonds (as well as in cash), since debt that cannot be repaid from taxes will need to be printed by means of ever larger rounds of quantitative easing (money printing) measures.

All this simply implies an accelerating erosion of the value and purchasing power of money.

Investors can protect themselves from rising inflationary risks by investing in or gaining exposure to real scarcity, traditional safe haven assets like gold, as well as other commodities, I would include things like agricultural land and soft commodities as well.

Gross government debt in percent of GDP

Country 2011 2012 2013 2014 2015 2016

width=22 Japan
233.100
238.441
242.927
245.854
249.916
253.388

width=22 Greece
165.559
189.149
187.944
178.530
165.057
162.839

width=22 Saint Kitts and Nevis
148.917
143.663
138.453
134.267
130.062
126.560

width=22 Jamaica
143.308
138.000
129.818
118.740
97.298
90.155

width=22 Eritrea
134.417
127.619
125.063
121.276
124.636
124.599

width=22 Lebanon
126.361
125.010
124.166
124.768
126.352
128.167

width=22 Italy
121.065
121.385
120.105
118.403
116.319
114.089

width=22 Barbados
116.904
115.605
114.556
113.004
110.297
107.546

width=22 Ireland
109.273
115.433
118.303
117.662
116.132
114.305

width=22 Portugal
106.030
111.793
114.928
114.599
112.540
110.493

width=22 Grenada
101.920
104.312
105.436
106.202
102.342
98.693

width=22 Iceland
101.196
96.772
95.034
91.721
88.209
82.549

width=22 United States
100.046
105.031
108.930
111.363
113.195
115.394

width=22 Belgium
94.561
94.276
93.922
93.633
93.240
92.955

width=22 Singapore
93.470
90.062
87.799
85.286
83.133
81.704

width=22 Cote d'Ivoire
93.346
54.833
52.374
50.138
48.592
47.496

width=22 France
86.811
89.371
90.706
90.750
89.681
87.683

width=22 Guinea
85.475
82.195
85.251
90.527
64.529
52.145

width=22 Canada
84.117
84.163
82.287
79.694
76.444
72.952

width=22 Germany
82.643
81.896
80.957
79.058
77.123
75.036

width=22 Sao Tome and Principe
82.358
84.114
83.869
82.586
62.743
59.180

width=22 European Union
82.316
83.682
83.744
82.778
81.221
79.525

width=22 Bhutan
81.253
95.326
103.544
107.407
110.672
107.367

width=22 United Kingdom
80.762
84.766
85.948
85.101
83.060
80.386

width=22 Belize
79.340
77.694
76.645
75.801
75.057
74.590

width=22 Seychelles
78.790
73.396
66.872
59.802
54.880
49.338

width=22 Sudan
78.220
87.285
90.478
92.476
95.174
94.826

width=22 Nicaragua
77.415
76.037
73.874
71.975
70.062
68.129

width=22 Egypt
76.239
76.644
75.541
71.637
67.455
62.986

width=22 Hungary
76.124
75.527
75.647
74.415
73.116
71.539

width=22 Cape Verde
73.948
78.322
80.170
77.535
73.717
71.659

width=22 Zimbabwe
72.755
73.029
72.125
72.845
73.160
61.436

width=22 Austria
72.331
73.875
74.135
73.792
73.350
72.904

width=22 Israel
71.146
68.912
66.848
64.357
61.960
59.687

width=22 Saint Lucia
71.084
77.827
83.221
86.581
87.100
87.838

width=22 Saint Vincent and the Grenadines
69.484
71.232
72.174
70.748
67.855
64.998

width=22 Antigua and Barbuda
68.629
66.578
63.902
58.537
54.804
49.357

width=22 Jordan
68.479
67.781
66.877
66.280
64.373
63.632

width=22 Spain
67.423
70.151
72.805
74.866
76.130
77.416

width=22 Malta
66.264
66.073
65.891
64.755
63.653
62.771

width=22 Netherlands
65.521
66.516
66.908
66.732
65.842
64.391

width=22 Brazil
64.981
63.999
62.524
60.899
58.974
57.218

width=22 Cyprus
63.960
66.416
67.832
67.933
67.961
68.044

width=22 Maldives
62.884
70.541
75.626
81.592
86.797
91.990

width=22 India
62.432
61.988
60.935
60.514
60.134
59.702

width=22 Mauritania
61.964
64.151
65.416
68.245
65.410
62.836

width=22 Sierra Leone
61.118
33.178
33.112
34.854
35.633
34.811

width=22 Guyana
60.433
59.287
59.717
60.269
59.631
58.827

width=22 Albania
59.363
59.242
59.558
60.579
62.014
63.627

Gawidth=22 The Gambia
57.664
56.926
54.182
51.076
48.064
45.149

width=22 Pakistan
57.645
57.279
56.499
55.094
52.836
51.142

width=22 Lao People's Democratic Republic
57.355
54.017
52.163
50.767
49.371
47.967

width=22 Fiji
56.801
56.889
56.463
56.057
56.166
56.215

width=22 Poland
55.952
56.369
56.460
56.241
55.561
54.688

width=22 Norway
55.420
55.420
55.420
55.420
55.420
55.420

width=22 Kyrgyzstan
55.202
54.615
56.832
56.408
56.407
54.523

width=22 Kenya
55.176
53.420
51.976
51.612
51.146
50.122

width=22 Malaysia
55.120
55.923
56.554
56.961
57.226
57.360

width=22 Dominica
54.889
54.804
54.114
53.444
52.863
52.447

width=22 Morocco
54.152
55.477
56.048
55.787
54.939
53.452

width=22 Djibouti
53.679
53.627
52.819
51.845
50.974
50.240

width=20 Switzerland
52.435
51.188
49.989
49.067
47.722
46.414

width=22 Mauritius
51.889
53.090
51.639
50.377
48.902
47.137

width=22 Vietnam
50.338
48.146
47.241
46.360
45.371
44.249

width=22 Finland
50.224
50.311
50.952
51.609
52.025
52.321

width=22 Trinidad and Tobago
49.966
50.954
51.478
52.892
54.892
57.421

width=22 El Salvador
49.907
49.310
48.699
47.510
46.398
45.344

width=22 Uruguay
49.344
46.877
45.282
43.620
41.492
40.142

width=22 Burundi
49.000
44.156
39.774
36.298
33.507
31.976

Bahawidth=22 The Bahamas
48.614
49.931
51.775
53.379
54.812
55.897

width=22 Croatia
47.532
50.048
51.932
53.404
54.487
55.117

width=22 Comoros
47.101
42.940
39.195
35.283
31.539
28.299

width=22 Democratic Republic of Congo
46.586
50.482
44.285
43.875
36.288
35.966

width=22 Belarus
46.298
45.593
50.313
52.285
57.095
55.857

width=22 Myanmar
45.165
47.703
49.097
50.242
46.459
47.102

width=22 Guinea-Bissau
45.077
43.505
41.403
38.481
36.247
34.159

width=22 Tanzania
45.008
48.885
50.289
50.258
49.845
48.915

width=22 Slovak Republic
44.941
46.938
47.112
46.869
46.110
45.387

width=22 Philippines
44.430
43.595
42.158
40.875
39.671
38.517

width=22 Denmark
44.327
45.829
47.004
48.087
48.813
49.185

width=22 Serbia
44.073
44.503
43.102
40.791
38.181
35.620

width=22 Venezuela
43.900
50.800
54.801
58.501
62.401
66.401

width=22 Slovenia
43.638
47.160
49.216
50.798
52.117
53.497

width=22 Argentina
43.346
41.469
40.380
39.493
38.022
37.313

width=22 Montenegro
43.073
42.203
41.094
39.931
38.562
37.708

width=22 Thailand
42.970
43.452
44.463
45.275
46.180
47.093

width=22 Mexico
42.897
43.637
43.518
43.430
43.269
43.182

width=22 Yemen
42.861
44.435
46.917
48.343
49.628
49.840

width=22 Lithuania
42.824
44.626
45.859
46.360
46.477
46.374

width=22 Iraq
42.332
42.785
31.754
24.485
24.163
19.532

width=22 Tunisia
41.719
48.047
48.536
47.646
45.501
42.979

width=22 Armenia
41.475
41.390
39.285
37.418
37.025
36.510

width=22 Czech Republic
41.127
43.248
44.563
45.680
46.666
47.628

width=22 Malawi
40.477
43.832
44.011
41.447
40.455
39.560

width=22 Turkey
40.340
38.085
36.324
35.139
34.186
33.246

width=22 Senegal
40.036
41.503
42.533
43.238
43.466
44.023

width=22 Bosnia and Herzegovina
39.594
38.370
35.725
32.342
29.777
27.903

width=22 Latvia
39.566
40.529
43.436
46.570
41.973
39.643

width=22 Ethiopia
39.442
34.071
33.329
32.485
31.461
30.091

width=22 Ukraine
39.342
39.387
38.999
39.253
38.418
35.143

width=22 Mozambique
39.030
42.719
46.318
49.643
52.095
52.520

width=22 Taiwan
38.455
37.887
35.454
33.077
30.842
28.714

width=22 Lesotho
38.235
41.867
41.237
42.713
42.864
42.328

width=22 Ghana
38.130
37.466
37.575
36.715
36.506
37.231

width=22 Tajikistan
36.995
38.630
39.939
40.095
39.729
38.207

width=22 Central African Republic
36.959
32.779
28.398
24.857
21.300
18.214

width=22 Georgia
36.783
38.022
38.177
36.498
35.506
34.473

width=22 Madagascar
36.393
35.973
36.216
36.539
37.178
37.514

width=22 Panama
36.152
34.773
33.431
31.217
28.916
26.592

width=22 South Africa
36.065
37.598
38.657
38.760
37.820
35.521

width=22 Sweden
36.033
32.586
29.158
25.731
22.436
19.251

width=22 Colombia
35.918
34.686
33.654
32.840
32.053
31.192

width=22 New Zealand
35.313
34.572
34.108
33.294
31.103
29.748

width=22 Romania
34.358
34.419
34.033
33.599
32.805
31.673

width=22 Bahrain
34.153
39.096
43.746
50.310
58.535
67.161

width=16 Nepal
33.922
33.468
32.930
32.457
32.191
32.216

width=22 Hong Kong
33.812
32.085
29.161
28.604
28.104
27.548

width=22 Costa Rica
32.650
33.331
33.997
34.965
35.948
37.027

width=22 Bolivia
32.366
31.420
30.617
29.849
26.680
24.421

width=22 Korea
32.020
30.001
27.960
25.954
23.976
22.166

width=22 Benin
30.832
30.528
30.111
28.989
27.973
26.691

width=22 Mali
30.025
27.176
24.525
24.999
25.668
26.386

width=22 Angola
29.909
24.715
19.887
16.323
13.735
12.241

width=22 Chad
29.787
29.699
27.827
26.001
24.701
24.856

width=22 Cambodia
29.195
28.756
27.627
27.089
26.099
25.036

width=22 Burkina Faso
29.147
29.871
30.507
30.999
31.494
32.127

width=22 Dominican Republic
28.462
26.655
24.876
23.016
21.222
19.722

width=22 Qatar
27.859
27.703
27.397
27.376
27.241
27.096

width=22 Togo
27.616
27.255
27.874
27.914
26.461
27.186

width=22 Honduras
27.561
27.795
27.918
28.128
28.441
28.915

width=22 Syria
27.529
27.902
27.671
27.367
27.098
26.901

width=22 China
26.881
22.198
18.447
15.476
12.996
10.932

Macwidth=22 Republic of Macedonia
26.298
28.187
27.423
27.256
26.931
26.401

width=22 Namibia
25.486
29.010
34.676
38.533
41.530
44.450

width=22 Indonesia
25.244
23.972
22.685
21.382
20.181
18.968

width=22 Zambia
25.124
28.688
29.821
29.885
29.099
28.404

width=22 Swaziland
25.109
28.990
30.927
31.882
32.741
33.168

width=22 Rwanda
24.427
26.083
24.401
22.129
19.703
18.341

width=22 Guatemala
24.220
25.047
25.669
26.078
26.532
27.021

width=22 Moldova
23.569
21.650
20.688
20.252
19.050
17.558

width=22 Solomon Islands
23.128
20.646
18.722
16.893
15.147
13.601

width=22 Uganda
23.044
25.291
29.452
31.903
31.632
31.082

width=22 Australia
22.816
23.823
22.964
21.602
20.024
18.164

width=22 Congo
22.049
22.192
20.558
19.352
18.113
18.173

width=22 Gabon
21.786
20.110
19.491
19.142
18.605
18.003

width=22 Peru
21.518
19.191
16.363
13.441
10.787
8.136

width=22 Ecuador
20.868
20.818
20.916
21.988
23.463
25.106

width=22 Turkmenistan
20.540
26.829
27.479
24.727
16.971
10.877

width=22 Suriname
20.042
18.551
18.560
17.129
15.547
13.772

width=22 Luxembourg
19.656
21.506
23.758
25.798
28.166
30.656

width=22 United Arab Emirates
18.498
18.108
18.117
18.426
18.633
19.163

width=22 Bulgaria
17.775
20.464
20.724
20.352
20.501
19.343

width=22 Niger
17.690
17.821
18.923
19.778
20.721
21.550

width=22 Nigeria
15.715
16.311
17.072
15.701
15.042
13.410

width=22 Botswana
15.680
14.080
12.505
10.888
9.425
8.117

width=22 Cameroon
14.547
14.682
14.973
14.988
14.993
15.489

width=22 Liberia
13.279
14.520
16.814
20.550
22.413
25.258

width=22 Kazakhstan
12.901
12.996
13.839
14.184
14.378
14.062

width=22 Paraguay
12.751
11.221
10.743
10.348
9.772
9.242

width=22 Haiti
12.603
18.969
24.188
29.404
34.240
39.825

width=22 Uzbekistan
12.583
14.006
15.516
17.050
18.650
20.209

width=22 Russia
11.681
12.089
12.643
14.517
16.800
19.480

width=22 Azerbaijan
10.676
9.971
9.980
10.310
11.492
12.959

width=22 Algeria
10.655
10.709
10.682
10.683
10.568
10.370

width=22 Chile
10.490
10.616
10.625
10.690
10.704
10.928

width=22 Iran
9.229
8.021
7.128
6.386
5.760
5.192

width=22 Equatorial Guinea
8.520
10.554
8.984
7.109
4.739
2.496