Irish Default Coming?

Interesting news making the rounds -

Société Générale, a market-maker for Irish sovereign bonds on behalf of the National Treasury Management Agency, has suggested Irish banks could default on a limited amount of "state-owned" debt after the government blanket guarantee expires on 29 September.

The Real Effect
Whooooah. Default? If only we could have seen that coming, like back in June -

The spiral continues as debt becomes more and more expensive to service, it becomes more and more likely there will be a default. Look for news to start spreading that the "contagion" is spreading again, taking other countries with it as the wagons circle for the inevitable global crash.

Incidentally, Denninger seems to feel that it will occur around the end of 2011 a very interesting time period that somewhat mirrors my beliefs as well. To very briefly explain what I believe is occuring in a very rough time frame I offer the following -

• Late 2010 - American/European imbalance (Economic "awakening" as individuals begin to notice the huge elephant in the room.) This will be characterized by continued riots, protests and editorials which begin to grasp the nature of the economic reality that we are in.
• 2011 - Depression deepens, War/Talks of war - As desperation sets in, wars break out both civilly and externally as "Peak" everything becomes the understanding. (Peak oil, water, food) The idea becomes that nationally, assets must be seized before the "other side" seizes them. This leads to...
• 2012 - World War III - Characterized by massive death and depopulation. There is a real possibility that this will culminate in some eugenic religious war, where the Muslims and Christians duke it out to end the world of each other thereby setting up the global Phoenix-Alpha religion.