Seems certain Greece must default, then Spain, who knows what next.
I doubt the great depression is coming, but who knows how much some country's and company's will see lost.
And As a result who may fall too, in a domino effect.
So what then, after the loss, we may well stand on the very edge of monetary reforms that could bring near centralized control of banking borrowing and lending.
Arjay is constantly warning us about the effects of endless printing of money.
We may see a world changing event, started by the impending Greek default.

Yes Belly I agree, I also suspect that they cannot rescue themselves.
If the US was not in a similar state it would not be so bad.
Many commentators believe that they cannot pay off their debts and that
all that is going on is a pass the hot potato game.
Sooner or later someone has to suffer the loss.

One report I read held that there is a real timebomb of derivities
in the US waiting to go off. It is apparently in the double digit trillions.
Of course they don't actually print money now it is just pixel money
on the screen of somebodies computer.

This is real Arjay stuff isn't it, except it is real !

Interesting starting point, Belly.

>>Seems certain Greece must default<<

I would have thought that this is actually less likely today than it was a week, a month, three months or six months ago. There seems to be a reluctant acceptance that this is a global problem, that needs to be addressed globally.

"...the financial crisis sweeping Europe was described as 'the single biggest risk for the world economy'"

http://www.dailymail.co.uk/news/article-2161527

Which is presumably why the IMF will get additional funding:

"...world leaders in Mexico have agreed to increase resources to the International Monetary Fund, with China offering another £27 billion, and other countries including Brazil, Russia and India pledging £6.3 billion each.

http://www.dailymail.co.uk/debate/article-2162036

>>...we may well stand on the very edge of monetary reforms that could bring near centralized control of banking borrowing and lending<<

That might be one possible outcome, Belly, no question about that. But there is a school of thought that considers State control to be the worst possible solution. Can you imagine having to apply to the Department of Finance for a loan to buy a car? Or start a business? Or buying for a washing machine on hire purchase?

The difficulty is in striking a balance. It clearly was out of whack when millions of people were able to borrow money to buy property, whose value then fell through the floor taking entire economies with it. Ireland is a classic example - they went on a house-building binge of such proportions that according to a recent estimate by Deutsche bank, it will take 43 years to fill them all...

http://www.planetpropertyblog.co.uk/2012/06/11/irish-over-supply-could-take-43-years-to-fill/

But the answer is not to swing the pendulum so far in the other direction that money supply dries up. That would be devastating for everyone, including Australia.

Pericles, I wonder about the IMF providing more money.
Australia contributed to that fund, but we will have borrowed those
funds perhaps from China.
So how much that was contributed by other countries was borrowed ?
Or is it all pixel money ?

The other worry is if you could not pay your debts and you went to the
bank manager and asked for a loan to pay your debts, what reaction
would you expect ?

>it will take 43 years to fill them all...
They will never fill those houses as the Irish are migrating in a big way.
I just don't see how we can possibly avoid having some of this trouble
land on us. Our pollies seem to be quite content to go merrily along
making promises and undertaking big green projects that may never
see completion.

I am afraid, in more ways than one Greece will/must default.
Like Spain, Ireland, Italy Greece borrowed too much.
It to stay in the ECC would need charity for decades, no lenders want to wait forever.
We should look at the impacts of this true crisis.
America too owes far too much, just maybe we will see a whole new world financial system come from this.
GFC all western country's involved, saw the loss Socialized, tax payers paid.
Profits did not get shared.
Germany, as is standard in our system, Capitalism,prospered on the loss of other country's.
I think the recent election will not change any thing this year, no latter than our summer this deck of cards will fall.
Yet, after the pain some thing far better may come.
As it did after the great depression.
The GFC should have bought about another such depression, it did not this will not.
But in no small part American greed and fraudulent tactics bought many ordinary, folk to their knees, not the perpetrators.

dear mr bell
they 'defaulted'..a long time ago
if your forgiven..the debt..thats default
that triggers underwriting bonds...its hardly..only the beginning