What it also means is that a Grexit is now likely just a matter of time.
It’s important to note that this isn’t coming by surprise. In fact, this precise scenario is something that former Federal Reserve Chairman Alan Greenspan predicted at least as far back as this February:
“I believe [Greece] will eventually leave. I don’t think it helps them or the rest of the eurozone – it is just a matter of time before everyone recognizes that parting is the best strategy.”
A ‘YES’ vote would have subjected Greece to a fourth round of austerity measures. It also would have likely done nothing to solve any of the underlying fundamental problems, essentially just kicking the can down the road yet again.
With this ‘NO’ vote, Greece has taken a bold step towards freedom from EU tyranny.
It’s fitting that just a day before this vote, our nation celebrated its own independence, which came from the hands of another European tyranny. Who knows, perhaps future Greeks will celebrate July 5th as their own ‘independence day’.
Of course, there are serious potential implications of this rejection of the EU. So, we must ask the question: Where to from here? Will this trigger the collapse of the global financial house of cards?
These very real concerns are why Donald Tusk, President of the European Council, has called an emergency meeting:
— Donald Tusk (@eucopresident) July 5, 2015
And other EU officials are starting to panic. European Commission Vice-President Valdis Dombrovskis is all but begging Greece to stay in the euro:
“Greece’s place is in the euro… The crisis in Greece does not threaten the financial stability of the entire eurozone. We have all the necessary instruments to ensure it, including the stabilization fund of €500 billion.”
So the solution is to… print money? Just like they’ve already been doing for months now?!
Fiat monetary systems like the euro run purely on confidence, and yesterday it received an almighty blow. That loss of confidence is likely to spread.
Those left standing around have seen capital controls imposed on their savings. In fact, Greeks can now withdraw just a mere €60 each day at ATMs.
What you see happening in Greece is merely a microcosm of what is coming to most parts of the globe. The only reason they’re in the spotlight right now and not the United States is that Greece doesn’t have the same printing press to create fiat money to cover its debt obligations.
Sadly, not enough Americans see it coming, so not nearly enough Americans are prepared for what may come.