Greece Will Default Tomorrow

June 29, 2015 0 Comments

No, this isn’t a prediction. It has already been stated by a Government official that Greece will not pay the €1.6 billion owed to the IMF tomorrow. The lack of means or inability to repay the IMF effectively means that they will default, which makes the referendum all but pointless, considering Greece is having it at least a week after the due date.

The Euro is going lower…

The currency that will probably take a bigger hit than the Euro will be the new currency of the Greek economy (probably the Drachma). The value of their new national currency would decline so fast. Starting a new currency doesn’t change the fact that Greece has defaulted on a large obligation to the IMF. So their solvency would still be threatened.

Whether the nation wants austerity or not, they need to show creditors that they aren’t being paid back in worthless pieces of paper. The new socialist government is showing the worth each and every day that having good ideas is significantly different than actually running a country.

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