Two sides of the same coin are about to pull a Twilight Zone and land on it's side, possibly as soon as Friday. Greece is being very vocal about their desire to see austerity, which has been a proven failure, to stop, as the IMF, ECB and EU all fight over what to do next that will keep their money train moving while making Greece comply. They might as well as solve the Israeli/Palestinian issue while they are at it or find a way to turn water into wine because it will take a freaking miracle to get this one done right.
As of right now, the DOW is up almost 80 points, regardless of the fact that the entire world economy may be ready to implode. Greece has said they will not pay up this Friday without a modification of the deal. The current plan would make Greece choose between paying their salaries and paying their creditors. That is not a winning formula except one on how to guarantee civil unrest. "Look here people we can't pay you this month because some fat douchebag in Germany wants a third summer home." Yeah, that'll fly.
The current ruling party, Syriza, got elected by promising changes, especially the brutal six year experiment with austerity that has done nothing to help the beleaguered nation as the rich continue to steal and not pay taxes. If they backtrack on that promise, they are going to get the heave-ho and a even further leftist government is going to take over, one that will promise to destroy everything as the Greek exit will be set in stone and hundreds of trillions in derivative calls and bonds go belly up, annihilating the world economy in the process.
This is from Reuters:
Looking for a compromise, the creditors suggest that Greece should post a budget surplus before interest payments of one percent of gross domestic product this year and two percent in 2016, instead of 3 percent and 4.5 percent under the terms of the current plan, sources familiar with the proposal said.
The sources said the Greek government, elected in January pledging to end years of bitter austerity, had offered a primary surplus of 0.8 percent this year and 1.5 percent next year.
However, the relatively small gap in headline numbers masks tougher unresolved issues on how to achieve the fiscal targets.
Athens has offered to curb early retirement to save on pension payouts but the lenders wanted cuts in supplementary pensions, a smaller civil service and an easing of private sector layoffs to make the economy more competitive.
It is due to pay back the IMF 300 million euros ($335 million) of loans on June 5, but a spokesman for the ruling Syriza party raised the possibility that it would not.
"If there is no prospect of a deal by Friday or Monday, I don't know by when exactly, we will not pay," Nikos Filis told Mega TV on Wednesday.
Greece has three other repayments, totaling about 1.23 billion euros, due to the IMF in June after the one on Friday.
If Greece skips the IMF payment, the immediate consequences are hard to predict. However, officials have warned for months that a default could ultimately push Greece out of the single European currency and unleash possible turmoil on world markets.
White House economic adviser, Jason Furman, said a Greek default was a "potential accident" in waiting.
"It would be a mistake to think it would be just contained to Greece," he told the OECD conference, saying policymakers had been wrong-footed in recent years by contagion from the U.S. sub-prime debt crisis.
The bigger date is August 20th, when hundreds of billions are due and regardless of what happens this week, and the chances of Greece being able to pony up that kind of ching is not good. It is considered a high risk event, versus a medium one this Friday, but both have potential to do great harm.
Meanwhile, the US continues to sink further and further as right wing lunatics and corporate democrats are killing this once great nation off. Recent studies now have the US as 3rd in income inequality on the planet, just behind Mexico and Chile and 5th in poverty rates behind Mexico, Israel, Turkey and Chile. This is unacceptable and as Bernie Sanders recently pointed out, so called "socialist" nations like all of Scandinavia, are currently near the bottom of all of those same studies. In others words, socialism to an extent, works and the longer we deny that, the worse things are going to get.
We need to get the minimum wage raised, free health care for all, free college, free daycare and we can accomplish all of that but cutting out bloated, worthless military budget in half and still have the most powerful military on Earth. Just getting rid of the pointless F-35 would save hundreds of billions, as would the immediate stoppage of building needless tanks, planes and boats that even the military doesn't want. Change is needed people and if we keep voting the same morons from both sides of the aisle into office, nothing is going to change as well as an immediate need to halt all out money bombs for campaigns. The future is now and we may have precious little time left.