The Bankruptcy Of The Planet Accelerates – 24 Nations Are Currently Facing A Debt Crisis.

Posted on October 7th, 2015

Dominoes fallingBy Michael Snyder

There has been so much attention on Greece in recent months, but the truth is that Greece represents only a very tiny fraction of an unprecedented global debt bomb which threatens to explode at any moment.  As you are about to see, there are 24 nations that are currently facing a full-blown debt crisis, and there are 14 more that are rapidly heading toward one. 

Right now, the debt to GDP ratio for the entire planet is up to an all-time record high of 286 percent, and globally there is approximately 200 TRILLION dollars of debt on the books.  That breaks down to about $28,000 of debt for every man, woman and child on the entire planet.  And since close to half of the population of the world lives on less than 10 dollars a day, there is no way that all of this debt can ever be repaid.  The only “solution” under our current system is to kick the can down the road for as long as we can until this colossal debt pyramid finally collapses in upon itself.

As we are seeing in Greece, you can eventually accumulate so much debt that there is literally no way out.  The other European nations are attempting to find a way to give Greece a third bailout, but that is like paying one credit card with another credit card because virtually everyone in Europe is absolutely drowning in debt.

Even if some “permanent solution” could be crafted for Greece, that would only solve a very small fraction of the overall problem that we are facing.  The nations of the world have never been in this much debt before, and it gets worse with each passing day. Read More..

And Now It Begins

Posted on September 2nd, 2015

Game Over financial collapseBy Monty Pelerin

And now it begins –the long-awaited financial collapse! The domino effect is not underway yet, but a preview of what is coming can be visualized. Detroit, Greece and Puerto Rico are harbingers of what faces many, if not most, political jurisdictions. Common to all is political legerdemain, lying and promises made that never could be fulfilled. All that differs is the degree of harm already inflicted and a jurisdiction’s ability to hold out.

Economics and mathematics are required to determine the downward spiral that most government entities have boxed themselves into. Economics tells us why there is not, nor will there be, a recovery. Mathematics tells us the hole is now so deep that there is no way out without massive defaults on debts and promises. Throw a bit of public-choice theory in and it all seems inevitable.

The three defaults mentioned above do not signal a domino effect. They are early warning signs, however, of what lies ahead. There is little similarity among the three entities other than the common element of political excess. Excess is a universal tendency of the ruling class of any democratic regime. It is independent of culture, language, religion, etc. It is the way that plunder is achieved and office is retained. Read More..

IMF May Commit Billions of US Tax Dollars to Greece

Posted on July 16th, 2015

WAIMH Red ArrowBy Thomas Lifson

The US government and media have treated Greece as a problem for the European Union, with nothing to do with us — or our tax dollars. That may be ending. As a friend pointed out to me, one of the 3 possible future lenders to Greece is the IMF. The IMF gets a big chunk of money from the US taxpayer: 17.68% of its funds.

That no one in Congress (and none of the Republican candidates for President) has spoken up to protect the US taxpayers’ money is very disappointing. Unelected bureaucrats at the IMF are prepared to give Greece billions more dollars of our money and not a peep from our government or media.   (my emphasis)

By Thomas Lifson for American Thinker

By permission American Thinker

Greek Debt Crisis: Germany Flexes Its Muscles in Talks With Bailout Ultimatum

Posted on July 13th, 2015

Greek Gift, EU cashBy Marcus Walker

Europe’s ultimatum to Greece, demanding full capitulation as the price of any new bailout, marks the failure of a rebellion by a small, debt-ridden country against its lenders’ austerity policies, after Germany flexed its muscles and offered Athens a choice between obeisance or destruction.

Sunday’s statement on Greece by eurozone finance ministers will go down as one of the most brutal diplomatic démarches in the history of the European Union, a bloc built to foster peace and harmony that is now publicly threatening one of its own with ruination unless it surrenders.

The weekend’s power play also highlights the cracks among Greece’s creditors—especially Germany and the International Monetary Fund—as the cost of keeping Greece in the euro spirals out of control. The IMF has urged Europe to give Greece some debt relief, something Berlin has opposed. Part of the reason for Germany’s hard line now is that maximally tough austerity in Greece could reduce IMF pressure to write off Greek loans.

The other 18 euro members were late Sunday pushing Greece to implement all of the austerity measures and broader economic overhauls its voters have twice rejected—in elections in January and in a referendum on July 5—not in return for new rescue loans, but as a precondition for even talking about them. Read More..

Greece Votes NO – Let The Chaos Begin…

Posted on July 6th, 2015

NO signs, NOEDITOR’S COMMENT: Clearly, this is a MUST and THOROUGH READ for those of you, who want to stay informed on the evolving Greece crisis! By the way, that should be everyone, as this is potentially that important!

By Michael Snyder

The result of the referendum in Greece is a great victory for freedom, but it is also threatens to unleash unprecedented economic chaos all across Europe.  It is being reported that approximately 61 percent of Greeks have voted “no” and only about 39 percent of Greeks have voted “yes”.  This is a much larger margin of victory for the “no” side than almost everyone was anticipating, and it represents a stunning rejection of European austerity Massive celebrations have erupted on the streets of Athens and other major Greek cities, but the euphoria may not last long Greek Prime Minister Alexis Tsipras is promising that Greece will be able to stay in the euro, but that gives EU bureaucrats and the IMF a tremendous amount of power, because at this point the Greek government is flat broke.

Without more money from the EU and the IMF, the Greek government will not be able to pay its bills and virtually all Greek banks will inevitably collapse.  Meanwhile, the rest of Europe is about to experience a tremendous amount of pain as financial markets respond to the results of this referendum.  The euro is already plummeting, and most analysts expect European bond yields to soar and European stocks to drop substantially when trading opens on Monday morning. Read More..

Greece Just ‘First Domino to Fall’

Posted on July 6th, 2015

Greek Myth Math from # 165954By Peter Morici

The troubled euro has always been a bad idea because a single currency just doesn’t make sense for too many European Union countries, says leading economist Peter Morici, a professor at the University of Maryland.

“Europe had a perfectly sound economic community before the Euro,” Morici said

“The Euro is a symbol more than a useful tool and they need to get away from symbols and get back into doing what they need to do. And that is to continue to reform and strengthen their economies. A currency doesn’t do that for them.” Read More..

The Charade That Is Greece

Posted on June 30th, 2015

Greece RiotsBy Monty Pelerin

The charade that is Greece and the European Union has been going on now for more than five years. Greece’s financial condition could not be repaired years ago. It is only worse now. It must end badly. The fact that it hasn’t is a sign of the desperation of European socialists and one-world government types.

Does Greece die tomorrow? I don’t know. It depends on how much more money the Eurocrats want to throw into this bottomless abyss. Greece’s fate was sealed several resurrections ago. Nothing has changed except for each talk at a solution being more incredible.

What will Greece’s failure do to world markets? It won’t help, obviously. However, if it hurts them it will show the insanity that rules today’s financial markets. This outcome was inevitable. Only the timing was unknown. Despite this inevitability financial assets continued precariously levitating well beyond reasonable levels. Does that suggest markets are rational? Or, they are being manipulated by central banks? Or that people are stupid for remaining in them? Pick your explanation. Read More..

And So It Begins – Greek Banks Get Shut Down For A Week And A ‘Grexit’ Is Now Probable

Posted on June 29th, 2015

Image of Greeks lined up at banks and ATMsEDITOR’S COMMENT: This is a MUST READ in its entirety given the huge potential impact that a Greek default could have upon Europe, the Eurozone, the euro and possibly even the rest of the developed economies.

By Michael Snyder

Is this the beginning of the end for the eurozone?  For years, European officials have been trying to “fix Greece”, but nothing has worked.  Now a worst case scenario is rapidly unfolding, and a “Grexit” has become more likely than not On Sunday, the European Central Bank announced that it was not going to provide any more emergency support for Greek banks.  But that was the only thing keeping them alive.  In order to prevent total chaos, Greek banks have been shut down for at least a week.  ATMs are still open, but it is being reported that daily withdrawals will be limited to 60 euros.  Of course nobody knows for sure if or when the banks will reopen after this “bank holiday” is over, so needless to say average Greek citizens are pretty freaked out right about now.  In addition, the stock market in Greece is not going to open on Monday either.  This is what a national financial meltdown looks like, and the nightmare that has been unleashed in Greece will soon start spreading to much of the rest of Europe.

This reminds me so much of what happened in Cyprus.  Up until the very last minute, politicians were promising everyone that their money was perfectly safe, and then the hammer was brought down. Read More..

Greece Caves In to EU Austerity Demands; Parliament Revolts

Posted on June 24th, 2015

Greece reform proposals from # 165320By Rick Moran

After months of arrogant posturing, Greek prime minister Alex Tsipras humbled himself and his government by submitting a plan to its creditors that include changes to the government’s generous pension system and tax increases – two issues that Tsipras swore he would never agree to.

In essence, Tsipras and his far-left Syriza party have reneged on their campaign promises to throw out the reviled austerity program and begin a massive new spending program. 

It looks like we may finally have a breakthrough in these intractable debt negotiations. The Greeks are now promising to hit their fiscal targets, crucially carrying out pensions reforms of 1pc of GDP and hitting a 1pc surplus target through various changes to VAT and early retirements.

To quote from the letter: “there are no fiscal slippages and the prescibed objectives have been exceeded”. That looks like being enough to satisfy creditor powers for now. Any final agreement could now come as soon as Thursday. Read More..

Eurozone Crisis: Grexit Edges Closer as Markets Brace for Athens Default

Posted on April 20th, 2015

Greek debt issueBy Katie Allen

As eurozone officials prepare for further talks on Greece, investors are sceptical that Athens can agree reforms that will unlock further bailout funds.

Eurozone officials meet for further crunch talks on Greece this week amid warnings that time is running out for the country to avoid defaulting on its debts and being jettisoned from the single-currency bloc.

But investors are increasingly sceptical that a rescue deal can be reached between Greece and its creditors. Financial markets do not expect a breakthrough at that meeting of the so-called Eurogroup – the eurozone’s finance ministers – and focus is already shifting to early May when Greece is scheduled to repay almost €1bn (£700m) to the International Monetary Fund – a sum most experts say Athens will not be able to raise.    (my emphasis) Read More..

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