Greece

Turkey has waned Greece that military drills they are conducting on the Aegean island of Kos, are against international law and could spark tensions between Athens and Ankara In a statement the Turkish Foreign Ministry spokesman Huseyin Muftuoglu said: “We call on our neighbor Greece to refrain from unilateral actions that… could trigger tensions and are against international law” RT reports: The exercises breached a 1947 treaty that prohibited this kind of activity on the island, Muftuoglu noted, adding that Turkey could take preventive measures if necessary.

As discussed last Friday, Greece is back in the public spotlight and - hardly surprising - it is once again on the verge of collapse. Greek yields surged in the past week as the country didn’t secure a positive review at the Eurogroup on 26 January. Additional noise came from indications that the IMF still views the Greek debt as unsustainable without further measures from the Greek government (the term was "explosive"), as well as  additional debt relief clarifications from European creditors.

Submitted by Michael Shedlock via MishTalk.com,

The IMF has once again threatened to pull out of the Troika following a warning that Eurogroup Loan Measures Not Enough for Greek Debt.

Greek debt yields had already been rising and spiked on the news.

Let’s take a look at what’s happening, culminating with an explanation of seemingly preposterous positions from all involved.

The next few weeks will be interesting to see whether or not the European Union and the European Central Bank really care about the wellbeing of Greece and the Greek economy.

The original reason for the bailout of Greece was to ‘protect the country’ and to ensure the EU-member would have a fair chance to sort all of its issues out. Contrary to what most people (including us) expected, the country was indeed able to put itself back on track, and the budget results of fiscal 2016 are emphasizing Greece is indeed doing much better.