IMF Warns of Global Crisis

At first the warnings about the global financial system seemed to be academic, but in the last few weeks they seem to have taken on a much more serious tone...and the warnings are being given by some very serious players.

The International Monetary Fund says debt-ridden countries are "playing with fire" unless debt is reduced. "If you make a list of the countries in the world that have the biggest homework in restoring their public finances to a reasonable situation in terms of debt levels, you find four countries: Greece, Ireland, Japan and the United States," Vinals said. Greece has edged closer to default as euro zone officials disagree on a planned second aid package for the indebted country. "We have now entered very clearly into a new phase of the (global) crisis, which is, I would say, the political phase of the crisis," he said in an interview in Sao Paulo, where the updates to the IMF's World Economic Outlook and Global Financial Stability Report were published. In the United States, the political problems include a fight over raising the legal ceiling on the nation's debt. A first-ever US default would roil markets, and Fitch Ratings said even a "technical" default would jeopardize the country's AAA rating. See it here; http://english.aljazeera.net/news/americas/2011/06/201161802548542994.html When Greece defaults the world will quickly find out how much the rest of the world's central banks had invested there...and now is lost.  That could lead to a domino affect as Spain, Portugal, Ireland and maybe others start to unravel. Remember that Belarus is also suffering a financial meltdown as we speak. This could all come on us like a flood.  Are we ready for the patterns of this world to be turned upside down?.....just like Jesus turned the money changers tables in the Temple upside down?