Today the man who first predicted Greek bank deposits would be stolen warned King World News that turbulence in major markets is about to be sparked by a Greek default.

James Turk:  "This could be a wild week, Eric. The volatility has already started, but there is a good chance for more turbulence to come as the week wears on….

Continue reading the James Turk interview below…


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"The overriding event of course is Greece, which is slowly inching into a default on its massive €320 billion of debt as it lives day-by-day with the threat of a bank bail-in hanging over its head. Add to that unstable situation a 2-day FOMC meeting ending Wednesday.

The United States Is Bankrupt If Rates Rise

My point has been that the Federal Reserve cannot raise rates because the US government cannot afford to pay a fair rate of interest. It is too overleveraged and spending too much money it doesn’t have. 

Mr Bernanke was telling everyone rates would be raised when unemployment fell below 6.5%, a target that has long since passed. You will recall it was only a few months ago that the Fed was telling everyone to expect an increase in interest rates to be announced at this week’s meeting. That’s a remote possibility now, with the consensus saying rates won’t increase until the end of the year. So the Fed no longer has any credibility, which is the risk that needs identifying. 

In an attempt to restore that credibility, the Fed may raise rates in this meeting. If they do, it would only be a token amount, like maybe 25 basis points. But even a token increase in its announcement on Wednesday would mean the wheels will come off the cart because there is just too much debt in the system.

Plug To Be Pulled On Greece

Then after the FOMC announcement, on Thursday EU financial ministers meet. There is a good chance that they will finally pull the plug on Greece. 

I keep focusing on Greece, Eric, because it is a land mine just waiting for someone to step on. When they do, the political ramifications could blow up the euro and maybe even ECB itself because it has so much exposure to Greece compared to its capital base. 

The underlying problem is that financial decisions at the ECB are being made for political reasons. Politicians are trying to pretend that the ECB can continue to create money out of thin air be keep giving Greece a liquidity lifeline. This misguided thinking has consequences, and reality is about to hit home, which raises an interesting question.

But Greece Holds The Cards

Which side is closer to reality? Greece or the so-called troika of the IMF, ECB and EU? I think Greece holds all the cards. 

Greece is still generating income from tax revenue, even in its weakened economic state. The problem Greece faces is that it cannot possibly meet its social spending commitments as well as carry its crippling debt burden. 

The lenders have refused to grant Greece any debt relief, which was the basic plank of Greece’s negotiating stance with the troika. The troika opposed debt relief because if they grant it to Greece, for the sake of European unity it will need to be granted to every other overleveraged welfare state, which is more than half of the countries in Europe.

Greece can go it alone. It won’t be easy, but it can be done. And it will be much easier to accomplish without the €320 billion debt burden hanging over its head. Greece can just walk away, like Greece and many other countries have repeatedly done throughout history. 

Greece wouldn’t be able to borrow again for a long while, but it probably shouldn’t anyway because it has learned its lesson – debt can be unmanageable.

Greece Preparing For Default

There is one last point about Greece worth mentioning, Eric:  Greece is clearly preparing for a default. 

The Athens government has asked all cities and other governmental bodies to move their available cash into accounts at the central bank. This is being reported in the mainstream media as a way for the central government to get its hands on more cash, but that is not correct. 

It is to prevent the ECB from taking this cash of governmental bodies when the ECB finally bails-in the private Greek banks. In other words, in a bail-in the ECB takes the euros deposited in private banks, but not the euros deposited in the central bank. So by putting their euro deposits into the central bank, Greece’s governmental bodies can keep their money out of the hands of the ECB. It’s just more evidence that Greece – not the troika – holds all the cards." ***KWN has now released the extraordinary audio interview with Gerald Celente, where he discusses the coming collapse, why gold is going to skyrocket as well as what the world will look like in the aftermath of the coming disaster what surprises, and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.

KWN Celente mp3 6:14:2015

***KWN has also now released the extraordinary audio interview with Bill Fleckenstein. This is one of his greatest interviews ever as he discusses why the stock market is going to collapse and why the coming financial unwind will be so brutal, the gold and silver takedown, what surprises to expect next and much more and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.

KWN Fleckenstein mp3 6:13:2015

***ALSO RELEASED: Full-Blown Panic Coming As This Historic Market Bubble Implodes CLICK HERE.

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The audio interviews with Gerald Celente, Bill Fleckenstein, Stephen Leeb, Andrew Maguire, Michael Pento, Dr. Paul Craig Roberts, Eric Sprott, Robert Arnott, David Stockman, Chris Powell, Rick Rule, John Mauldin, Egon von Greyerz, James Turk, Dr. Philippa Malmgren, Marc Faber, Felix Zulauf, John Embry and Rick Santelli are available now and you can listen to them by CLICKING HERE.