Prophecy Watch: Grexit Explained

Prophecy Watch: Grexit Explained

Greece will soon default on their loan payment from the International Monetary Fund. As it does, there will be more problems which could soon happen to Greece. The banks in Greece have already been restricted and the prime minister has called for a referendum on the bailout proposal by the European Union finance ministers. The finance ministers are meeting today in emergency session to determine any further course of action.

It is highly unlikely that the Grecian people will take the deal presented by the Eurogroup of ministers. With that vote, they could pave the way for a Grexit (Greek Exit) from the Euro currency. Greece would still be part of the European Union (as I explained in this previous post entitled “Prophecy Watch: Grexit“), but they would be out of the Eurozone. The Grexit would help in the short-term. They could create another currency, devalue it, and then use it to pay its debts. However, the debts would still be in Euros so that would make it very hard for Greece to operate over the long-term. Tourists from other countries could go to Greece for very little money. Housing prices would fall and one could make a deal in buying a house. Yet, the Grecian people would suffer enormously under all of this change. This scenario is just a microcosm of what could happen to other countries, regions, and even the world.