The Next Greek Crisis Is Coming

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A refugee holds an umbrella as he tries to light a fire during rainy weather at a makeshift camp in the northern border village of Idomeni, April 8. Bulent Kilic/AFP/Getty

 

As you approach the northern Greek city of Kozani, which stands on a plateau surrounded by mountains, you start to see smoke—thick white clouds floating above the knotty shrubs and sun-dappled hills of Western Macedonia. This is the heart of Greece’s coal industry; the plumes come from the chimneys of power stations dotted around the region.

When most Greeks think of Kozani, they think of coal. In the 1950s, the Public Power Corp. (PPC), now Greece’s biggest electric company, took over the mines here and brought prosperity to this poor, largely agricultural corner of northern Greece. Locals soon abandoned their traditional ways of making a living: saffron cultivation, marble production and fur-making. Mining was not easy, but the workers were well-compensated. The city’s businesses flourished. Continue reading

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. Continue reading