Greece just defaulted on its 1.6 billion international loans, even with a last minute deal with the IMF, becoming the first developed economy to default on a loan with the International Monetary Fund.
The people of Greece have already undergone budget cuts to pensions and other social services, as well as numerous tax hikes, in order to try to pay back money which many claim was not their idea to borrow in the first place.
The country has already received almost 240 billion euros in an additional two bank bailouts from the EU and IMF. Those who want Greece to stay beholden to its creditors will argue that if Greece falls, then so will Germany, Spain, Italy, and France, along with other European countries tied to Greece’s economy.
Despite tens of millions of Greeks demonstrating in the streets after watching the shuttering of banks, experiencing non-working ATM machines, and suffering long supermarket lines, the default is now real. Banks will not open until July 7th, and even working ATMs allow only limited withdrawals.
The country has refused the demands of lenders in a show of stalwart objection to what essentially would amount to a kick-the-can game – pushing the insolvency to a future date.
The stock market has already responded to the Greek shut down, although the controllers would have us believe “everything will be just fine,” and the US economy may very well follow in the country’s footsteps unless the secret government is removed.