Greece...

antrobus

AG47 wrote: »

The question is, what happens when Italy, Ireland, Spain and Portugal all want to default next?

That's an easy question.:)

The Euro implodes, and the Second Great Recession sweeps across the globe.

antrobus

Graham_Devon wrote: »

Does it also avoid the need to bring the IMF into the equation?

There is no "need" to "bring the IMF into the equation". The ESM simply states that the task of negotiating the memorandum of understanding detailing the policy conditions attached to the loan should be conducted in liaison with the ECB and, wherever possible, the IMF.

AG47

antrobus wrote: »

That's an easy question.:)

The Euro implodes, and the Second Great Recession sweeps across the globe.

Is this inevitable? Is there any way to stop the domino's knocking each other over?

danothy

AG47 wrote: »

Is this inevitable? Is there any way to stop the domino's knocking each other over?

It's a long shot, but the proper management of national finances could just be the answer to not seeing the world implode financially.

[Deleted User]

AG47 wrote: »

Is this inevitable? Is there any way to stop the domino's knocking each other over?

The IMF could step in and convert all the global debt in SDR's. It all depends if China and the BRICS agree.

http://www.imf.org/external/np/exr/facts/sdr.htm

antrobus

remorseless wrote: »

BTW - what happened to the missed IMF payment last week? Forgotten already?

I'm sure the IMF haven't forgotten about it.

There's a timetable that governs this sort of thing. Greece failed to pay on the 30th June; they's get a letter on the 14th July, the Executive Board will consider what to do in three months time etc.

http://www.telegraph.co.uk/finance/economics/11711774/Germany-will-not-pour-money-into-Greek-black-hole-warns-Angela-Merkel-ally.html

AG47

danothy wrote: »

It's a long shot, but the proper management of national finances could just be the answer to not seeing the world implode financially.

Its a bit late for that now, is there any way out? Once one domino falls the bit bigger one falls and the even larger one and so on and on.............

antrobus

AG47 wrote: »

Is this inevitable?

I can remember the time when it was 'inevitable' that the UK would sign up for the Euro.

AG47 wrote: »

..Is there any way to stop the domino's knocking each other over?

Well, this would help.:)

danothy wrote: »

It's a long shot, but the proper management of national finances could just be the answer to not seeing the world implode financially.

Ireland is headed in the right direction; started 2014 with €215 bn of debt worth 123% of GDP; ended 2014 with €203 bn of debt worth 109% of GDP. A couple more years like that, and they'll be better off than the UK.

Aretnap

remorseless wrote: »

BTW - what happened to the missed IMF payment last week? Forgotten already?

Greece will probably get a red bill in about a week's time. Then one from debt collectors threatening to mess up their credit rating.

AG47

Where does the loss go when a nation defaults? The same principle of domino falling, when a small domino falls on a larger one................

https://www.youtube.com/watch?v=y97rBdSYbkg