Parallel Greek Currency
Greece might resort to IOUs and/or capital controls to avoid a disorderly default and keep the banks afloat for now. As things get worse, the European Central Bank has analyzed a scenario in which the Greek civil servants are paid in IOUs. The final result will be the return of the Drachma.
Global Liquidity Squeeze
A few days ago, the IMF warned regulators to prepare for a global “liquidity shock.” In China, the credit boom has been one of the primary engines for “global growth” in recent years; however, conditions are changing. In Europe, the Greek debt crisis is finally coming to a breaking point and over here in the U.S., Americans are increasingly having difficulty meeting their financial obligations. In short, the global liquidity squeeze has begun.
Japan Overtakes China
Japan has overtaken China as the biggest foreign…
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