Debt — EU, US, China

First, McClatchy explains why Germany has to worry more about the debt of Greece, Portugal and Spain than it is letting on, or wants to — it's called credit default swaps on one country's lending to another.

Germany will have to backstop Greece et al in some way, shape or form.

Second, little Timmy G. says the U.S. will never lose its AAA bond rating because, in essence, it's too big to fail.

Well, the real reason is because all the bond rating agencies are in the U.S. and because the dollar is the global reserve currency.

BUT — what if Beijing wins its push for a backup reserve currency? Even more, what if China's national sovereign wealth fund starts its own ratings agency?

Wipe that smile off your face, Mr. Treasury Secretary.