Reuters / Remote / Staff

The market value of European banks has shrunk by more than €50 billion after Greece shut down its banks until July, 6, the day after the referendum on the bailout deal is held.
Without a complete capitulation from the troika, Greece will default on the IMF tomorrow and emergency liquidity assistance should be withdrawn on Wednesday.

RMB-world-currency-billboardAs a former trader, I know that if I were holding China’s cards, I would accumulate a massive position in gold and a massive short in the dollar and then release the truth in shock and awe fashion.
The instantaneous transfer of wealth from the west to the east that will occur when this happens will be spectacular.

economic dollar collapseBased on the reaction overnight by the stock market futures to the EU/Greek situation- I would hazard the opinion that the zombies on CNBC were slighly off-base when they asserted last week that a Greek default was already “priced into the market.”
If Greece leaves the EU, it will likely trigger the eventual unraveling of the entire EU.

GREXITWith Greek contagion already spilling over to Italy, China, and now even Puerto Rico, LIVE UPDATES on the rapidly evolving Greek Debt Crisis are below:
*Breaking: Greece WILL NOT Repay €1.6 Billion IMF loan due Tuesday, Reuters is reporting!

The good old daysThe rocket-fueled ascent of Asia is now an old story.   So perhaps we shouldn’t be bothered by BCG’s latest report which shows private Asian wealth has just surpassed Europe’s for the first time in centuries.
Will Asia’s wealth eventually surpass America’s?  Almost undoubtedly.  But the risk of near term reversals is high.

The fact of the matter is that all along the way, true risk has never been accounted for–or factored in.  It’s been papered overliterally.  Risk is akin to skin the game or lack thereof. What makes sense, unfortunately, is what it has evolved into is such a huge skimming. 
Such a huge casino that the sheer strength and density of it and its infiltration and infestation of government (and ultimately control of money) has created a system that can’t be fixed.  It’s a fantastic casino that Wall Street in big finance manages like the Taj Mahal. 

Is this the beginning of the end for the eurozone?  For years, European officials have been trying to “fix Greece”, but nothing has worked.  Now a worst case scenario is rapidly unfolding, and a “Grexit” has become more likely than not. 
This is what a national financial meltdown looks like, and the nightmare that has been unleashed in Greece will soon start spreading to much of the rest of Europe.

bank run*Update: Greece officially passes Capital Controls Act – Banks to Remain closed until July 6th, ATM Withdrawals Limited to €60/day
He who panics first panics best.

It appears the phrase might not have been translated into Greek, as now that the Greek banks and market officially will remain closed Monday, Greeks have suddenly found religion, and are storming ATMs, stores, and gas stations tonight…

1498071I am of the opinion that some of the Greek banks will not open Monday and those that remain open will shut down with a day of opening or at least by June 30.  The ECB and IMF are looking at June 30 as the absolutely deadline for full on default, no concealing it any more.
The ELA must protect its position and will likely order a bank holiday and full on capital controls because the bank deposits are now less than what is owned. Collateral is going to be worth ZERO in short order as a Greek default shoots rates to 50-90% on 2 year bonds, just like the last time Greece took the haircut that avoided a full default 2 years ago.
This will precipitate a bail-in as the ELA, along with the troika, will demand full deposit theft to protect this 100 billion euro assets still within reach.  Bank holiday will give the troika and ELA provisions time to extract everything they can reach in these accounts.  If the Greek central bank does not nationalize the banks sometime between Sunday and Wednesday, the banks will fail and crash, throwing the entire system into chaos.

Play

marketsWith the Metals Hit Yet Again, Eric Dubin Goes On An All-Out RANT in This Week’s Show, Discussing:  

  • Why June Was the Most Interesting Trading Month in the Entire 15 Year PM Bull Market
  • Silver Open Interest EXPLODES Over 200,000 Contracts For the First Time in History! 
  • S.C. Shooting Kabuki Theatre As Elite Work to Fasttrack TPP & Obliterate the Constitution!
    No COMEX Expiration Raid?
     Implications & Conclusions
  • Rebooting of the Bull Cycle in Gold & Silver is Underway- Just Can’t See it on Short Term Charts! 
  • Eric Dubin Explains Just Exactly Who is Taking the Other Side of JPM’s Massive Naked Shorting of Silver, and Why a Genuine Shortage of Silver is Coming Directly Down the Pipe!
  • Why Things Are Shaping Up For a HOT Summer!

    The SD Weekly Metals & Markets is Below:

falling-bearGold and silver are languishing near major lows, trudging through the barren sentiment wasteland of the summer doldrums.
The major factor behind this weakness is extreme shorting by American futures speculators.  But their heavily-bearish bets are actually VERY BULLISH for both precious metals.
Not only do these traders as a herd always bet wrong at price extremes, their shorts are guaranteed near-future buying.

I don’t really know how many people out there realize this, but we are meant to play the bad guys in the global theater being put on by the elites.
Americans are the villains, the rest of the world plays the role of innocent victim…