Fitch Downgrades Greece

The above title is actually the headline in the Wall Street Journal today.

Some will say, "Dennis...what the heck does Greece have to do with us?"

Answer; It's all potential foreshadowing of what happens to nations who borrowed money yesterday...so they could live higher lifestyles than they could afford today.

And now, when it comes time to pay the piper, it can really fall into a nasty downward spiral.

It's bad enough when you can't afford to make payments on your existing debt, but as if to add insult to injury...Fitch comes in and tells the world your credit rating is tanking. So now all those who loaned you money, AND ALL THOSE WHO YOU WISH TO BORROW MORE MONEY FROM....have suddenly decided they are going to raise the interest rate they will charge you....because you are now a bad risk.

And now instead of being able to borrow money at 4% interest....everyone wants 7%. Remember, you were having problems making the payments at 4%....how are you possibly going to make the payments at 7%? The ONLY way is to MASSIVELY CUT EXISTING PROGRAMS!

And when you make massive cuts to programs....it lead to Social unrest.

Fitch Ratings cut its rating for Greece to the lowest investment-grade rating and said the outlook remained negative, adding to the woes facing the country.

Yields on Greek debt have soared this week as worries have grown about the country's ability to finance its heavy debt load, with some analysts saying the likelihood of the country needing to accept aid from the European Union and International Monetary Fund is growing.

The downgrade comes days ahead of an auction that will test investors' willingness to buy some of the country's fastest-maturing debt. On Tuesday, Greece is to auction a combined €1.2 billion ($1.6 billion) of 26-week and 52-week Treasury bills.

Local traders say yields at the auction could top 7%, well above levels paid when the government last sold short-term debt.

As we said above...how are they going to pay 7% when they were having problems paying 4%?

The answer....another bailout.

The report from New York think-tank said funding to be provided to Greece will have interest rates "well below those prevailing in the market." EU officials couldn't be immediately reached for comments on the Medley Advisors report.

See it all here; http://online.wsj.com/article/SB10001424052702304024604575173391393050242.html?mod=WSJ_Markets_LeadStory

Let's remember friends....Greece is teeny-tiny in economic size, so it is not a stretch to make them a sweetheart deal that is "well below those in the market". (bailout)

But what happens when it is America that needs this deal? We have an economy 100 times bigger than Greece. Who will be standing there to offer us a sweetheart deal? Japan?....sorry...broke. China?....sorry....we are full of your debt. India?....sorry...we have been lightening our load.

Who does that leave to save us? Answer....the INTERNATIONAL MONETARY FUND. (IMF)

Repeat after me; "A ONE WORLD CURRENCY IS ON THE HORIZON"....just as the Bible says would happen in the very last days.