The speculation is over! Greece will default on the 1.7 Billion Euro debt payment to the IMF today. The decision was announced on Monday by Greek Prime Minister Alexis Tsipras, who also said he would like to be ′Prime Minister for Life′ as he loves power so much. Well, at least he is being honest about it. On Sunday, a referendum will be held to determine if the Greek people want to remain in the European Union and continue to use the Euro as its currency. Tsipras said that he may resign if the ′Yes′ vote wins. The two companies which print paper currencies for most Western nations are already preparing to crank out drachmas for Greece if the ′No′ vote wins. Financial markets took the news poorly, ending with some of the worst numbers in the past two years.
Greece is not alone in dealing with sovereign debt issues. The other ′PIGS′, Portugal, Italy and Spain are not much better off. Now we hear from the governor of Puerto Rico that the US territory is also in deep trouble. Many nations, as well as individual states in the US, are likewise covered in red ink. Many fear that a Greek contagion could create chaos that may spell doom for the European Central Bank and cripple the International Monetary Fund. The fallout could end with shaking up global markets that really cannot afford to be shaken, nor stirred.
Enter the Bank for International Settlements, the BIS. Ah, the BIS, the Godfather of Banking! Though if one were to use a ′Mob′ analogy, the BIS is probably more like Murder, Inc. From their fortress-like headquarters in Basel, Switzerland, the BIS has the final say on monetary policy. The bank of last resort. They just published their 2015 annual report and it is not very good.
Despite many politicians trying to paint rosy pictures of the economy, the BIS warns that the global economy is sluggish and weak. Worse yet, the world′s monetary system is stretched like a rubberband, ready to break, or at least, recoil sharply. They confirm what I have been saying all along, that whatever sunshine economists spin about the financial markets, such are merely being propped up and inflated by a bubble of cheap money and super-low interest rates. And that bubble is getting mighty large and its only a matter of time before it bursts! When it does, the eggheads will not have an easy solution since we are still at near-zero interest rates.
So if you don′t believe me, you better start listening to the Bank for International Settlements. They are the money folks behind the New World Order. The BIS is the central bank for the world′s central banks. They are the center of the core of the global economic system. If they are worried about the state of the economy, then you should be, too! Greece on the verge of default didn′t happen by accident. Their trouble was accepting bad advice from bad experts for many years. The same sort that our politicians generally listen to and act on, also for many years. Now, as the Rev. Wright would say, the chickens are coming home to roost!