Two Countries Announce Inability to Repay IMF

These days are exciting times! Greece officials have already notified the International Monetary Fund ("IMF") that they will be unable to repay more than $1.6 billion owed to private creditors at the IMF on July 10, 2015 due to outrageous interest rates forewarned about years ago before Greece agreed to borrow. This has created a bit of a stir on the open market with fluctuations as the Dow Jones Industrial Average ("DJIA") plummeted by 350 points - akin to the meltdown of 2008. Keep in mind, this is only one country when a vast majority of countries around the world have obligations to the IMF. (While I write this, I have just learned that Puerto Rico has followed in step today.)

If you do not think that was bad enough, Puerto Rico has announced similar problems in the same week. It will be unable to pay its obligations to the IMF also due next week. Puerto Rico is now the second country to default on its obligations within the span of a month. Don't worry though, your money market account will do just fine - just listen to the talking heads.

So, what does this mean for people around the world? This is only the beginning of a huge mess manifesting consequences we have been hearing about for decades now. While the open market fluctuates with extreme volatility, there have been people known to amass great amounts of wealth with put options against the dominant currencies as the market plummets and buying up stocks reduced to mere pennies. This is only one way. The other is to increase one's holdings in precious metals as currencies begin to destabilize. As currency rates drop, the value of precious metals increase. We all know what happened to the Deutschmark during World War II.

So, while the public pushes for a $15/hour minimum and "livable" wage, the dollar is becoming worth less and less every day whereby $15/hour does not support a livable wage in the metropolis' of the United States today, let alone 5 years from now in 2020 when the $15/hour is suppose to take affect. We are literally focused on the wrong endeavors as global currencies begin to crash.