S&P Warns Greek Debt Rollover Would Be Default !

• A Greek default will trigger the US$616B of CDS (credit default swaps, insuurance against default). Many banks and financial institutions can go bust over night. The Illuminists are simply setting the pieces for a global economic, financial and monetary collapse. It will begin in the Eurozone, spread to UK and Japan and finally implode the United States. Got gold yet? Gold is money for 5000+ years. It is insurance against financial and monetary calamity. When all fiat currencies die, gold will still remain as money!
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  S&P warns Greek debt rollover would be default
  By William L. Watts, MarketWatch
  European officials seek private-sector involvement in Greek aid plan
  FRANKFURT (MarketWatch) — Standard & Poor’s Ratings Services on Monday dealt a blow to a French-led proposal to roll over Greek government debt, saying the plan would likely put Greece in “selective default.” In a statement, the ratings company said it believes a pair of options presented last week by French banks ”would likely amount to default under our criteria.”
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  France’s banking federation last week offered proposals that would see
  private creditors reinvest some of the proceeds of maturing Greek debt. European politicians want private creditors to share some of the burden of a new rescue plan for Greece, while steering clear of any measures that would be deemed a default by ratings companies. The European Central Bank has warned that it won’t accept as collateral any Greek bonds that are declared to be in default.
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  S&P said that under its criteria, a “debt exchange or similar restructuring” would be deemed an effective default if the transaction is viewed as “distressed rather than purely opportunistic” and if the measures result in investors receiving less value than the promise of the original securities. If either proposal were implemented, it would likely lead to Greece being declared to be in “selective default,” the company said.
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  The company said Greece’s near-term reliance on official financing, the government’s difficulty in cutting its deficit, and prices for Greek government debt in the secondary market all underscore the country’s weak creditworthiness and point to a “realistic possibility” that either financing option would fit the “distressed” category.
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  S&P also noted that the new bonds issued under either proposal would have restricted transferability and would likely trade at a price significantly below par. In addition, the ratings company said the 30-year bonds would far outstrip
  the maturities of any outstanding Greek government bonds and observed that speculative-grade issuers are rarely able to access market financing with such a long-dated bond.
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  Meanwhile, German Finance Minister Wolfgang Schaeuble, in an interview with Germany’s Spiegel magazine, said officials are making plans “in the unlikely event” Greece defaults in the future. “Of course, as a responsible government, we’re preparing ourselves for the unlikely event that things defy all expectations and Greece actually does fail to make its payments,” he said. “Were that to happen, we’d try to avert uncontrolled developments.”
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  At the same time, “it would be completely wrong to cavalierly force Greece into insolvency because of the risks to the Greek economy and the danger of infecting financial markets,” Schaeuble said.

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