Greece is in trouble.
http://www.bloomberg.com/apps/news?pid= ... nSqw&pos=2
Quote: "“It’s five minutes to midnight for Greece,” Buiter, who will join Citigroup Inc. as its chief economist next month, said in a Bloomberg Television interview today. “We could see our first EU 15 sovereign default since Germany had it in 1948.”
The EU’s economic affairs commissioner said late yesterday that officials are ready to help Greece with its budget deficit after concerns about its public finances sparked a rout in Greek government bonds. Fitch Ratings cut its rating on the nation’s debt yesterday to BBB+ and two other major ratings companies are threatening to follow.
“Default is not unavoidable,” Buiter said. “But unless there are radical fiscal actions, lasting cuts in spending and tax increases of at least 7 percent of GDP, the writing is on the wall” for Greece.
There’s “absolutely” no risk Greece will default, Finance Minister George Papaconstantinou said in an interview today with Bloomberg Television. Greek banks are “fundamentally sound” and Greece will not seek an EU aid package, he said.
Greece, the lowest-rated country in the euro region, is struggling to cut a budget deficit of 12.7 percent of gross domestic product." end quote.
If the world thinks they will default with a deficit of 12.7% of GDP, then Japan is probably next, then either the US or UK? The US deficit for 2010 has been guessed at a couple trillion, and the last GDP figure I saw was something like $14 T, as of 2007, IIRC. GDP has fallen since then, but using the 2007 number, the US $2T deficit would be 14% of GDP. If the US continues on the path we're on, it is bye-bye dollar/govt/economy. Once the US credit rating drops below AAA (or is it Aaa now?), then interest rates will rise and the govt won't be able to find suckers to finance their govt spending. THAT'S when I think the US will come unglued at the seams.
Gerald Celente says:
"Breaking Point 2010
The first decade of the 21st century is going out the same way it came in … with a bust and a bang.
The dot-com bubble burst in 2000, and the Bailout Bubble will bust in 2010.
9/11 terror ushered America into the decade, and terror will strike again before the decade ends.
The decade long wars waged by US and NAT0 against Afghanistan and Iraq are leading the world to the first Great War of the 21st Century.
The 20th century belonged to America, in 2010 Empire America will be breaking apart. The signs are there for all to see.
World leaders and most economists see a very different future unfolding. They insist the financial crisis is over and recovery is on the way.
—–
War, terror and calamity are not set to time clocks. Anything can happen, anywhere, at anytime. Prepare for the unexpected. It is the close-combat state of mind."
end quote.
The above is from a post at:
http://www.shtfplan.com/gerald-celente/ ... 9_12082009
It doesn't get much clearer than that. If you have preps to make, as said above with reference to Greece, "It is 5 minutes to midnight."
Local fix-it guy..