The Greek Debt Crisis Escalates: Is Greece Threatening To Leave The Euro?
Is the Greek debt crisis about to explode out of control? According to Der Spiegel, the government of Greece is considering leaving the Euro and reestablishing its own currency. If that happened, it would throw global financial markets into chaos and it might mean the end of the euro as a pan-European currency. But the Greek government has to do something about all of these debts. At this point Greece is literally drowning in debt. The yield on 10-year Greek bonds has now reached an astounding 15.51%. There is no way that is sustainable even for the short-term. Greece is rapidly going bankrupt. Even with absolutely brutal austerity measures in place, the debt just continues to explode. There are protests against the government almost daily and Greece is in a state of chaos. Unfortunately, because Greece is part of the euro they can’t just start printing lots of money as a way to get out of this crisis. Now there are persistent rumors that Greece really is thinking about leaving the euro, and that could potentially mean big trouble for the world financial system.
It was a new article in Der Spiegel that brought these rumors to the forefront again. Der Spiegel says that it possesses secret Greek government documents that discuss plans to leave the euro. Der Spiegel also claims that a secret crisis meeting was held in Luxembourg on Friday night to discuss this crisis.
The following is a brief excerpt from the Der Spiegel article that caused the financial community in Europe to be in such an uproar today….