I agree with alot of what you have said. However, here is what I am trying to understand. Who will buy US treasuries, when all its major buyers are getting in serious trouble? How will US government fund itself?

Here is a list of all the buyers http://www.treasury.gov/ticdata/Publish/mfh.txt

No country is an island anymore. Even Greece, which has a smaller economy, can cause problems for everyone around the globe.