Thursday's Spotlight- Greece Steals Spotlight of Fame as CDS Spreads Explode to New Highs; Contagion is Here as Ireland Goes Wacko; Haircuts On Way For Allied Irish Bank Bond Holders; Greece In Turmoil; MK Video on "Fiat Inflation in France"; Black Swans Growing as Reports of Radiation Sickness Spreads; Three Hundred Square Meter Hole in Reactor 2; Fukushima is Equivalent of 20 Nuclear Cores Exposed; Infant Deaths in U.S. Skyrocket; Volcano in Eritera Erupts Big Time; New Strain of German E.coli Discovered in France; Copper Theft in CA Big Business; Schools in Florida Shut Water Off; Citi Bank Now Says 360,000 Accounts Hacked; Dude, Where's My Internet IPO?; Much More

Update 1: Greek CDS now at 2050. What else can we say?

Update 2: Radiation levels skyrocket in South Korea as reactor 4 spews more smoke.

Main Article
With Greece stealing the spotlight away from all of the other significant developments (more on that later), one has to wonder if those other significant developments will prove to be a Black Swan of sorts - or many Black Swans of sorts. A quick glance at the Greek CDS shows it above 1900 - a level that was unthinkable just last year for a "sovereign" nation. It will be very interesting to see if Greece can make its July bond payment without more direct handouts bailouts from the United States taxpayer ECB/IMF/EU. We all know the Titanic turned out to be "unsinkable" just as they were 100% Bernanke certain it was, so too Greece and the whole EU experiment. Greece may even see 30% yields on the 2 year before the week is over the way things are going. Calling Guiness Book of World Records, we need you again for another record.

The word "contagion" was all the rage last year and it has seemed to have lost some meaning this year as the ECB promises to support every member til the very end - even if that means taking down the whole ship. Surprise, we call their bluff. One look at Irish and Portuguese CDS spreads show others are also catching on.  As of this writing, Irish CDS spreads are wider by 35 points up to 815 now. Of course, neither this nor anything below 400 is anywhere near sustainable and once a spread breaks the 700 level, it's a K.O. As always, we recommend to keep your Irish eyes on Ireland's bombs bonds as that seems the next "sovereign" to see the SHTF. While we're at it, throw in Portugal for good measure. Remember, "the pain in Spain remains on the Iberian plain." For now.

As per our Update 3 yesterday, Allied Irish Bank has defaulted. Of course, this story has quickly vanished from the Main Stream Media. Since this nationalized bank is 92% owned by the Irish gov't, we can't see this as being bullish for the EU as a whole. Neither is the fact that the default means bond holders will get 90% haircuts.

As "Occupied London" says, Greece is "a society in some spectacular turmoil." We couldn't agree anymore and think the worst is yet to come once austerity measures are implemented fully. In this instance, even a change of command won't bring about the necessary changes. Sorry G-Pap. Reshuffling the gov't amounts to reshuffling the deck chairs, on the Titanic - if you haven't already sold them to the banksters, that is.

Now for the main event - the doom. [insert dramatic doom music]. While Greece performs the sideshow and the clowns run around trying to reshuffle deck chairs, the back doors of Hades the animal containment has been left open. First, we begin this part with an excellent video from Max Keiser entitled - "Fiat Money Inflation in France." We must say, this is quite a video to watch and it is a warning of what is to come in a fiat world. Of course, we didn't just pick this video because it has our favorite word "fiat" in the title - it explains the inherent flaws in fiat and that fiat currency is always created to benefit a few at the cost of the majority, and it always ends bad - and that's when everything else goes smooth. [insert dramatic doom music]

Fukushima is an ongoing Black Swan event - one of those events that can't be easily seen coming in advance (although building a nuclear power plant on the shore, in a highly active seismic region, on a volcanic island, etc, etc, etc didn't help). With that said, why consciously make a bad situation worse by downplaying the emergency? From SKF we get the first reports of radiation sickness. We present to you without further commentary an excerpt:

Tokyo Shinbun (paper edition only, 6/16/2011) reports that many children in Koriyama City in Fukushima Prefecture, 50 kilometers from Fukushima I Nuclear Power Plant, are suffering inexplicable nosebleed, diarrhea, and lack of energy since the nuke plant accident.

Any questions? Good, because today we learn from NISA (Nuclear and Industrial Safety Agency) there is a hole of about 300 square meters in the reactor 2 suppression pool and that Fukushima is the equivalent of 20 nuclear cores being exposed. Now who said from day two point five that they were covering up everything? Again, connect the dots and see for yourself. Metallic taste being reported in Japan and along the West Coast United States. Earless rabbit being born far outside evacuation zone. Radiation sickness being reported far from Fukushima. And dozens of other clues you need to remember as this situation escalates. Just because your Channel 7 news is reporting about Weiner's weiner 24x7 and not a peep about Fukushima doesn't mean anything has changed. Watch this video on the incredible and alarming increase in infant deaths in the United States alone. We can only imagine the statistics in Japan being "massaged" to look better or not even reported.

We're paying particular attention to the events unfolding down in Chile, but now also in Africa. A major volcano in Eritrea has erupted and is intensifying with today's explosion being the largest yet. The plume can been seen from space and covers thousands of square miles. Even Hilary Clinton canceled her trip to Africa because of concerns. This volcano is said to be one of those "super volcanoes" so it deserves a closer inspection. The volcano in Chile is important because the ash has decimated the local economies of farmers in 5 countries and is getting worse. Print more money Ben. That'll make it go away. 

Another concern to watch out for is a new strain of the E.coli that was discovered in Germany has been discovered in France and has so far sent 7 children to the hospital. Do we have an epidemic on our hands?

We've been discussing the decline of the U.S. in great detail and pick up on the daily jobs cuts for a while now. Here we have yet more disturbing evidence that the collapse is accelerating as unemployment continues to skyrocket. Copper theft in California is becoming a big business for the unemployed. And then it's also those smaller things you don't usually notice but add up - like a school district in Florida being forced to cut drinking water at fountains to save money. Talk about pinching pennies (I know an individual who can make a "dime scream." Maybe they can hire him?)

Last week we reported that Citibank announced very quietly, it was hacked a month ago, and that a total of 200,000 accounts were compromised. Today, they made some changes. Now they are reporting today, one month later, that 360,000 accounts were hacked. It seems Too Big To Fail Banks are tearing a page from TEPCO - deny, deny, deny. Then when your cover is blown - downplay, downplay, downplay. Then once the sheeple are sleeping and few notice, you slowly test the waters with releases that are closer to the truth - but still not quite the truth. Sort of like the most recent wave of internet scams IPOs - LinkedIn and Pandora come to mind. LNKD is now at $70.55 from its high of $122.70 for an almost 44% drop and P is down to $15.50 from its high of $26. Our deepest condolences to the suckers retail investors who fell into the hype. At least the rigged casino "stock markets" are up today. Dude, where's my internet IPO?