http://www.theguardian.com/business/live/2015/jun/30/greek-debt-crisis-day-of-decision-for-tsipras this truly is a historic day,
Well there is only one thing people ultimately care about, whether or not the sharemarket and commodities crashes. The market would have already factored in this, so basically nothing will happen in the global scheme of things. Nothing to see here, move along now.
Someone already mentioned on another thread that this will be spun as a good thing, and its already happening so watch the mainstream media start singing a different tune. On ABC business last night Marcus from Marcus today said how its a good thing 'as investors dont have to worry about it anymore'. So basically its already happening - its a good thing - nothing to worry about!!!!
MSM is saying Greece could return to Drachma in days. In which case each Drachma will be worth 50% of one existing Euro. So that's 50% of a nations wealth gone overnight. Greece is now running out of safes as people start hording Euros.
Decided to to take a punt in gold and silver mining stocks this morning. Not sure how KJC and ABC will hold up with demand today.
Don't they have something like 3 months before they have officially defaulted? Anything can happen in that time. From Bloomberg: Default Definition The missed payment by Greece is the largest in the history of the IMF, which was conceived during World War II to coordinate monetary policy and promote exchange-rate stability. Nations that miss IMF payments are ineligible for further funds as long as they are in arrears. The lender's procedures for dealing with overdue borrowers stretch over two years and culminate in potential expulsion from the fund's membership. The three major credit-rating companies have said failure to pay the Washington-based IMF wouldn't constitute a default because that term is reserved for private-sector creditors, and the IMF avoids the word.
What happens now is European countries stop throwing cash at a country unable to repay its debt and unable to collect taxes.
I was reading Paul Craig Roberts the other day who posted a Q&A by Putin during an economics conference in May, where he framed the Ukrainian crisis as the West trying to enter the CIS union through the back door of Ukraine without any regard for the interests of Russia or other member states. Then I read Tsipras yesterday in which he said Greece is not leaving the European Union as there are no provisions in the constitution for ejecting member countries, irrespective of debt defaults. I'm not saying its the whole truth, but its enough to make you laugh. Putin engages with Greece in the wake of the Troika/West's failure and opens the backdoor into the EU peacefully, while the "West" tries to smash its way into the CIS with chaos and destruction. Even the coming Greek referendum reminds me of the exercise in legitimacy employed over Crimea. All the Greeks I've spoken to do not believe they will be kicked out of the EU even if they revert to the Drachma. In fact, it is just not logical to call it Europe and exclude Greece, so I wouldn't be surprised if the EU remains with Greece in it and the bureaucrats of the Troika are left with egg on their faces ... as other states realise that they can re-establish their price competitiveness (beggar thy neighbour and participate in the currency wars) by re-establishing their own national currencies while remaining in the free trade zone of the EU. Or the ECB might just ring-fence the bad debts somehow and declare business as usual once they realise that their bluff is called and they have nothing in their hand.
