Sounds ominous, right?
Well, unless Greece can scrape together enough money to pay its bills, the title of this post is going to turn out to be painfully true.
Daniel Hannan writes:
We are approaching end-game. Greece is supposed to pay off its next tranche of debts on 17 October, and the markets are now expecting what this blog has long predicted: a large-scale default. It is conceivable that another rescue package will be put together, and the collapse deferred for a few more months. Either way, though, Europe’s banks are staring at a Lehman moment. This is the tempest long foretold, slow to make head but sure to hold.
If the EU comes up with the money, an October 17th surprise will be averted. The problem is that Europe is having a hard time getting enough money together to help out, and they’re starting to wonder if they should.
What happens if they don’t get the money together? Fiscally speaking, all Hell breaks loose and markets start to collapse, and even die. The problem is that if they DO get the money together, they’re just prolonging the inevitable.
So, as a precaution, go and buy gold – lots of it. Before October 17th.
Here’s a snippet of the article that prompted me to write about this:
Le chat is out of the bag. Treasury Secretary Timothy Geithner, speaking at a conference, said German Chancellor Angela Merkel has repeatedly said “we are not going to have a Lehman Brothers.” Which probably means there is every chance they may have a Lehman Brothers, only one immeasurably bigger. European Parliament Member Daniel Hannan writes: “We are approaching end-game. Greece is supposed to pay off its next tranche of debts on 17 October, and the markets are now expecting what this blog has long predicted: a large-scale default.”
But since this could lead directly to the unraveling of the European project, no one will countenance even mentioning the apparently inevitable. French President Nicolas Sarkozy has “reaffirmed France’s determination to put everything in place to save Greece,” a wording which strongly suggests he’s going to try to get somebody else to pay for it.
That someone, according to John Ellis at the Business Insider, is likely to be the U.S. taxpayer. He predicts that before long Europe is going to ask Obama for a trillion dollars.