Greece warns it does not have the money to make IMF repayment

Because of the interconnectedness of the world economy, if Greece does truly fall apart and cause the currency bloc to crumble, it will spread to South America. South America’s weakest countries, such as Argentina or Venezuela or both, would be the most likely to take the hit and then collapse. From there, it will spread north up to Mexico which would then take a hit and go through the same process. When the falling dominoes reach Mexico, the United States has two weeks before it will suffer the same fate. Respectively, ordinary Americans will have a buffer of two weeks time to withdraw all the cash they can from the bank.

Keep your eyes wide open and remain on guard. The world is too interconnected and is one catastrophe away from implosion.

 

Greece cannot make debt repayments to the International Monetary Fund next month unless it achieves a deal with creditors, Interior Minister Nikos Voutsis said on Sunday, the most explicit remarks yet from Athens about the likelihood of default if talks fail.

Meanwhile, Finance Minister Yanis Varoufakis said it would be “catastrophic” if Greece left the euro, predicting it would be “the beginning of the end of the common currency project”.

Shut out of bond markets and with bailout aid locked, cash-strapped Athens has been scraping state coffers to meet debt obligations and to pay wages and pensions.

After four months of talks with its eurozone partners and the IMF, the country’s leftist-led government is still scrambling for a deal that could release up to €7.2 billion euros ($10.1 billion) in remaining aid to avert bankruptcy.

“The four instalments [sic] for the IMF in June are €1.6 billion. This money will not be given and is not there to be given,” Mr Voutsis told Greek Mega TV’s weekend show.

He said in the last four months Athens managed to pay public-sector salaries, pensions and dues to the IMF by extracting 14 per cent of national output, doing “remarkably well” for an economy that doesn’t have access to money markets.

“At some point we will not be able to do it and at some point we are going obviously to have to make this choice that no minister of finance should ever have to make,” Mr Varoufakis said.

Full article: Greece warns it does not have the money to make IMF repayment (Sydney Morning Herald)

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