In its efforts to stave off further reductions in the ratings on its credibility as a debtor, and stabilize its finances going forward, the government of Greece has voted to reduce its spending, and increase taxes (specifically a 90% tax on bonuses for bankers).
Forex Blog has an article by Adam Kritzer entitled Fears of Sovereign Debt Default Enter the Forex Fray. Adam’s article focuses on Government debt as a percentage of GDP, and in particular contrasts the high debt as a percentage of GDP for the developed states with that of the fiscally conservative developing nations (which developing nations, one might say, have already learned their lessons on debt).
According to the BBC, Greece has unveiled major spending cuts. In my commentary below, I hypothesize a way to calculate a “future going burden” for countries based on data in the BBC article (i.e. based on debt as a percentage of GDP and deficit as a percentage of GDP).
According to Forbes, Ukraine is getting the $2B remaining from its IMF loan. According to the article the loan had been on hold because of decisions in the Ukraine to increase the minimum wage (among other factors) and the decision by the IMF to give out the money was pending. Apparently the decision was made on the basis that Ukraine needed the funds in order to pay its gas bill and continue supplying Western Europe with natural gas from Russia.
According to the BBC, investors are concerned that Greece may default on its debt. From the article:
This week two-year bond yields have surged to 3.09% from 1.9%. Ten-year Greek bonds had their worst weekly decline since January, with the yield up to 5.3% from 4.99%.
Reuters’s article North Korea takes on traders and, just maybe, reform indicates that North Korea has revalued private holdings of the won by a factor of 100 (i.e. the value of currency held privately has been reduced by a factor of 100).