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

This one number explains how China is taking over the world

Whether it’s the renminbi/yuan or the Euro, for example, the world could indeed live on without the Dollar and has already created a way to circumvent it — just as the BRICS nations are attempting to launch their own internet system, separate from the currently U.S. dominated version. This article serves as a case-in-point.

RMBChart

 

An announcement Tuesday by the obscure-sounding Society for Worldwide Interbank Financial Telecommunication, better known as SWIFT, may not get much ink. China’s currency, it reported, was used in 8.66 percent of global trade finance transactions in October, the group said. It’s now the No. 2 most widely used currency for trade finance, supplanting the euro.

But that is a lot more important than it might sound. It gives an important window into how the global economy is changing–and why America’s long reign of economic dominance is at risk. Continue reading