The European Financial Crisis
Jun 17, 2011
Europe is near a steep precipice right now with the revolt of the Greeks against the banking system. It appears that the most important watch date is this Sunday, June 19.
"As the SocGen report below summarizes, Greece may have about 72 hours before it gives itself a Pass/Fail grade on Sunday, which in turn will have massive repercussions on the Troica bailout, on the eurozone, on the EUR, and on all those "Lehman-like" consequences you have been reading about. Once again, just like 2000 years ago, the fate of the western world (we would say democracy but that has not been the case for centuries), is about to be decided by a few popularly elected parliamentarians in Athens."
The European Zone has imposed severe austerity measures as a pre-condition for further bailout money. The government of Greece understands that under the present Babylonian system, austerity measures are the only option, if one wishes to continue life under Babylon.
The Greek people themselves, however, are in revolt against these austerity measures. This is causing a government crisis, because many elected officials want to represent the people. So, according to the above article, there could be a vote of "no confidence" this Sunday. That would topple the government with a call for new elections, and this would cancel or postpone any financial help for a long time.
The Greek banks, then, could easily fail, and the government could go into default. But since many European (and also American) banks have bought Greek bonds, a default would have a ripple effect that could rival the collapse of Lehman Brothers in September of 2008.
Some reports have indicated that the revaluation of the Iraqi dinar is supposed to be the great Fix for the world economic situation. The central banks (and many other banks) are holding trillions of dinars, hoping for a revaluation before the whole system collapses around them. Powerful as they are individually, it is like herding cats to get all of them to sign off on the plans for Iraq's return to the Babylonian family of nations and its system of finance and world trade.
Perhaps this Greek crisis will force them to finish the job and force Iraq to agree on the three final security positions that would make up a complete Government of Iraq (GOI). That would meet the criteria for the revaluation of the dinar to whatever level they have decided.
So the world financial situation looks like the next date to watch is June 19, as we have projected.