Following weeks of intense negotiations, it now appears the chance of an agreement between Greece and its creditors is becoming slimmer by the day. Today, a meeting of eurozone finance ministers failed to make progress, and a further “last chance” meeting of eurozone leaders will take place on Monday. Alexis Tsipras, the Greek Prime Minister, is remaining publicly defiant, but, if Greece fails to make payment on June 30 to the International Monetary Fund (IMF), it will default on billions of euros in loans and throw the Greek economy into further chaos.
The Greek people have seen the writing on the wall and have begun withdrawing their bank deposits – roughly $4.5 billion has been removed for Greek banks this week alone. As the Greek Finance Minister, Yanis Varoufakis, has made clear, Greece simply does not have the money for its June loan payment. Apart from predicted instability in the stock and bond markets, a default could well result in Greece forced into leaving the eurozone, and, possibly, the European Union itself.
If you believe this crisis is another example of the perils of the central banking system and that European market instability will be yet another kick to the U.S. economy, please Like & Share this post.