With the economic situation rapidly declining in the US and talk of China unpegging from the Dollar in the not-so-distant future, which would put America on the path to where Greece is now, it is extremely important to see what happens when a nation cannot pay its debt or bills.
Greece is making preparations to default on their IMF payment, with one Greek official stating "If we have to choose between a default to the IMF or a default to our own people, it is a no-brainer." In what is being described as their "fall-back plan," sources tell The Telegraph "We will shut down the banks and nationalise them, and then issue IOUs if we have to, and we all know what this means. What we will not do is become a protectorate of the EU."
Bank of America warned that a “critical sequence of events could unfold” once Greece misses a payment to the IMF. It would trigger a parallel default to the eurozone bail-out fund (EFSF) under the legal master agreement, and might force the EFSF to cancel its loan packages and demand immediate repayment. This in turn would trigger a default on Greek government bonds issued under the bail-out accord.
The situation is now critical. Even if Greece manages to cobble together enough money to cover the April deadline, it owes the IMF a further €200m on May 1 and €763m on May 12. A Greek official told EMU counterparts at a teleconference on Wednesday that the country has run out of money. "There is no way we can go beyond April 9," the official reportedly said.
Are we watching America's future play out in Greece right now?
Some financial experts believe so, as we hear Jim Grant in the first video below discuss how, with massive regulations on banks, the FED has "virtually nationalized the banking sector" already, which ties in directly to the second must-listen to video below where examples of those invasive regulations can be heard by Doug Hagmann. Doug and Joe are joined by Steve Quayle and financial expert Ross Powell from Survival401K.com, who explains what we are seeing happen right now, how China is preparing to unpeg from the Dollar, and how the US will be going after retirement funds and 401Ks in the near future.
When China unpegs, the US Dollar will ultimately lose its world reserve status, debts will become due and the bottom line is the US is broke, we cannot afford to pay those debts, which brings us right back to the train wreck everyone is watching happen in Greece. That is our future. That is what is coming, and as the Hagmann interview below so aptly states in their title..... "Time is running out."
Most importantly, they explain what can be done to protect yourself.
