Breaking News - Greece Defaults on Debts

The Greek Economy

In a stunning move that will lead to the inevitable dismemberment of the Euro, Greece has officially announced that it will default on its debt.

While even yesterday the government was assuring German and other Eurozone members that it would not default, today Greece told another saga. At the steps outside the National Bank in Athens, Yanis Varoufakis, Greece's Minister of Finance, made a surprising statement to the world. Greece will in fact default on its national debts.

Right now, Greece has about $245,000,000,000 in debts which is about 175% of their GDP. The debt is calculated in US dollars, which is currently very strong against the Euro. Changes in the Eurozone banking metric have led to the US dollar's appreciation of over 33% against the Euro. This move, while beneficial to countries like Germany, has only contributed to making things worse for countries like Greece.

While defaulting on debt is a sore subject for any actor in the global sphere, it is very unlikely that Greece will be in the dark for long. Researchers and eager investors will see that the Euro is far too strong a currency for Europe. The dynamic between Greek rural living and cosmopolitan German living has been given far too much stress on the elasticity of a union.

The Euro is now on a final plunge, perpetuated by Greece. In the long run this will be very beneficial, and Greece has begun a process to free Europe from the shackles of a currency that has brought more harm than help to its intended benefactors