But let's start with Greece. They are going to default tomorrow. That is a given at this point. If the EU/IMF don't pony up funds by then, which they have refused to do, Greece is going to default and the chances of them ever paying back the loans they were given is nil. This has already led to some major problems today, almost all of which are connected to the Greece default. Some Italian banks have had to close today as they exposure to Greek debt has overwhelmed them. Expect this to happen more and more as the problems worsen.
All of this is being caused by the greedy rich and bankers wanting more and more and the rest of are being seen as cannon fodder. The TPP is a prime example of this at it is a corporate takeover of most of the planet, one that could encompass as much as 80% of world trade. The bankers have demanded higher taxes in the form of VAT and pension cuts in Greece, even though many pensioners are collecting nothing as the funds have run out as well as corporate tax cuts because as we all know, that always works never. Several within the EU have demanded sovereignty over nation states so they can prevent another Greece from happening, which means they want to decide who lives and who dies and to hell with what voters think. This is the global fascism sweeping the world and Greece is smart enough to say they are done with that.
But none of that matter if the entire banking system fails due to unbridled greed. Stock markets world wide have plummeted over this, with European stocks fading the most, falling anywhere from 2 to 6 percent depending on the country. Greek stock markets are closed for today and probably for the rest of the week, as are their banks which don't reopen until next week.
Puerto Rico just declared themselves in serious trouble as they too do not have enough money to pay back creditors and their banking system may fail at any minute. Unlike some countries, they do not have the luxury of declaring bankruptcy so their economy may just detonate instead. China's economy has been falling for months and with their exposure to Greek debt unknown, they may be a stone's throw away from going under themselves. They have a massive stock bubble, along with a real estate growth bubble that appears to be ready to pop any minute, that may sink them as a world economy any day now.
All of this will have serious repercussions as the economy is tied together and if one domino falls, the rest are going to go with them. If Greece defaults, the world banking system may implode with it, because as the BIS and myself have now both said, the banks do not have the ability to withstand another major shock due to the fact they have not done enough after the last one to fix any major problem. They used Band-Aids instead of tourniquets and now the world is bleeding to death and they cannot nor will not fix this. Here is what the report said:
• The world will be unable to fight the next global financial crash as central banks have used up their ammunition trying to tackle the last crises.
• Central banks have backed themselves into a corner after repeatedly cutting interest rates to shore up their economies.
If that sounds familiar it is because it is exactly what I have been saying for years now and I have this blog to prove it.• Central banks may have contributed [to the coming crisis] by fuelling costly financial booms and busts and delaying adjustment.”
This week will prove to be problematic if not catastrophic. Keep a close eye on world market and the Dow because an epic downturn may be right around the corner.