Posted on 06/30/2015 7:24:07 PM PDT by SeekAndFind
Greece joins Somalia, Sudan and Zimbabwe on the latest to be in debt to the International Monetary Fund.
As Athenians rallied underneath thunderclouds to show their support for keeping Greece in the eurozone of single currency nations, their broke government defaulted on a $2.2-billion payment to the International Monetary Fund.
At midnight on Tuesday, Greece joined Sudan, Somalia and Zimbabwe as countries in arrears to the IMF. Also at midnight, the bailout assistance package that began in February 2012 formally expired, leaving Greece without access to any emergency finances.
In Washington, the IMF acknowledged that Greece had failed to meet its financial obligations on time and that no further financing would be sent until the arrears were cleared.
Gerry Rice, the IMF’s director of communications, confirmed the IMF received a request on Tuesday from Greece for an extension on their “repayment obligation that fell due today” and that it would go to the IMF’s board in due course. No other details were given.
Greece could enter this new phase of its history by turning back the clocks — a national referendum on Sunday could result in the eventual return of the drachma.
(Excerpt) Read more at thestar.com ...
when the American people see the debt incurred with all these preposterous govt pensions, they will look at their govt employee neighbors or friends very differently....
yeah and Costco just decided to buy Greek olive oil instead of Italian olive oil....
They care about keeping their pampered positions and power. That’s all.
Maybe Obama will help them out with his “stash”
How about disastrous loans which can never be paid off, which only benefit the elite?
I fail to see how the average Greek citizens (not the ones in neighborhoods with a Porsche in every driveway) will be any worse off. Assuming that just about everyone in Greece has safe cash and assets somewhere where the gov can't get it, I'd think barter will do just fine. Tourists? Solid foreign currencies will cover that.
Greece has the same problem the US and a lot of other countries do. Loans were made with printing press money. They only benefitted the elite. They can never be paid off. But while this fiasco continues, the "little folk" are supposed to pay back that fake money by giving up their real assets and benefits.
The question is if at some point will the bankers and other globalist/elitist manipulators have to head for the hills?
Can't sell Hawaii. Taking over Hawaii was questionable. They'd want their independence and monarchy back in place.
Greece, soon to be a Russian colony.
“Greece has the same problem the US and a lot of other countries do. Loans were made with printing press money. They only benefitted the elite. They can never be paid off. But while this fiasco continues, the “little folk” are supposed to pay back that fake money by giving up their real assets and benefits.”
Pretty much what my cousins in Athens were saying yesterday afternoon. They are heading down to the village until after the referendum.
That's a good point. Both Fed and ECB policy is to "stimulate" the economy by shoveling money into the largest banks, paying for pork gobbling contractors, etc. One difference with Greece is their oversized public sector. The money has been spent by both the elite and the public sector employees. In both cases it did not benefit the country as a whole.
What happens next depends in part on what Tsipras has been telling his co-conspirators in private; if he's been assuring them that the EU will cave, the IMF will fork over cash, etc, there is going to be enough internal trouble to crash the "gov't" and bring on early elections; if he was seeking this outcome all along and everyone was on the same page, then they're off to the races -- all downhill.
And of course they would kill all the white people, which has been an unofficial long-term goal by those people.
Problem is, when talking debt on that scale you reach diminishing returns on such inflation. Comes a point when printing more doesn’t really do any good. Creditors figure out the scheme fast, demanding proportional or dynamic interest (or refuse to lend at all). If just making interest payments, more borrowing means greater interest; US debt service alone is about 20% of federal spending - which, alas, means it’s a much greater percentage of actual revenue, bringing us dangerously close to ALL income going solely to debt service (without which the system collapses). And fractional-reserve banking means there is far less actual cash than there is imputed ownership of money; there exists only some $4T _cash_, about half overseas and maybe half that squirreled away under mattresses (so to speak), so when creditors start demanding payment in hard currency the government will be unable to come up with enough - even firing up the physical presses will require a whole lotta time & effort to produce on the order of $100B paper dollars (and methinks the briefly-entertained minting of a $1T coin won’t go over very well).
The IMF will take control of the Greek economy and put severe import regulations in place that require duties on all imported items.
That is the tried and true IMF medicine
“Problem is, when talking debt on that scale you reach diminishing returns on such inflation. “
Well said, you are absolutely correct. As I said, the USA is not any better off than Greece, we’ve just had more financial tricks at our disposal to keep our national Ponzi scheme running a bit longer.
I believe that the Chinese and others have taken a great deal of our land and resources as collateral for all the debt we’ve run up. The collapse of the USA will consist of our creditors taking possession of most of the country, while our citizens become indentured servants and a few elite bankers and politicians head to New Zealand with their piece of the action.
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