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There will be a tipping point where the advantage to be gained by badly impacting the dollar and positioning the yuan as new reserve currency will be greater than the disadvantage suffered by a collapse in the value of the dollar. The tipping point is closer than many believe.

• Europe shares set for worst week of 2015 (Reuters)
• Jobs Report Not Likely to Trigger June Rate Hike (Hilsenrath)
• U.S. jobs market seen firming despite lackluster growth (Reuters)
• Gross Says Bond Rout Scary as Hell Even Without Bear Market (BBG)
• Apple Is the New Pimco, and Tim Cook Is the New King of Bonds (BBG), which ZH said in 2013
• In 'year of Apple Pay', many top retailers remain skeptical (Reuters)
• OPEC Nations Signal Few Prospects for Oil-Production Change (BBG)
• China regulator says amending rules on margin trading, short selling  (Reuters)

And just like that, after effectively defaulting to the IMF a month ago, Greece has just re-effectively re-defaulted to the same IMF on its payment due tomorrow, which now will not be made, just as we said it won't. 

Update: GREEK FINANCE MINISTRY REJECTS CREDITORS' BAILOUT PROPOSAL

Blockchain.com, which claims to be the maker of the most popular Bitcoin wallet, suffered at the weekend what the Guardian describes as a "total crypto breakdown", highlighting once again the vulnerability of electronic and digital currencies to human and technological errors and hacking.

• Obama signs bill reforming surveillance program (Reuters)
• Tsipras to meet Juncker in Brussels for talks on agreement (AFP)
• Spot the irony: OECD cuts global growth forecast, says recovery taking hold (Reuters)
• The Secret Money Behind Vladimir Putin's War Machine (BBG)
• Companies' Borrowing Spree Darkens Stock Market Future (BBG)
• How OPEC Hurt Big Oil (WSJ)
• What's OPEC Going to Do With Iran's Million Barrels a Day? (BBG)
• Draghi’s Europe Looks Healthiest for Years Despite Greece (BBG)
• Bund yields inch higher, euro holds ahead of ECB (Reuters)

Last year, Elliott Management's Paul Singer highlighted "one risk that stands way above the rest in terms of the scope of potential damage adjusted for the likelihood of occurrence" - an electromagnetic pulse (EMP). As Michael Snyder previously details, our entire way of life can be ended in a single day.  And it wouldn’t even take a nuclear war to do it.  All it would take for a rogue nation or terror organization to bring us to our knees is the explosion of a couple well-placed nuclear devices high up in our atmosphere.  The resulting electromagnetic pulses would fry electronics from coast to coast, and, as PeakProsperity.com's Chris Martenson explains, the country is extremely vulnerable to an EMP...

According to Bloomberg, six Nigerian central bankers were charged with fraud in an 8 billion naira ($40.2 million with an m, not a b, not a tr) currency "scam." No chat rooms here, just a plain old "mega scam involving the theft and recirculation of defaced and mutilated currencies,” the Abuja-based Economic and Financial Crimes Commission said in a statement dated Sunday on its website.  In addition to the central bankers, among those charged are also sixteen commercial bankers who conspired with Central Bank of Nigeria regional executives.

A recent poll suggests that 58% of Syriza supporters would rather return to the Drachma than to remain in the single currency while severe austerity measures are imposed. Syriza have a 26 point lead over the next most popular party, New Democracy.

• Greece, creditors exchanging documents to reach deal - Commission (Reuters)
• Greece’s Creditors Reach Consensus on Proposal to Athensa (WSJ)
• Greece calls on lenders to accept 'realistic' plan sent on Monday (Reuters)
• Hundreds missing, many elderly tourists, after ship capsizes on China's Yangtze (Reuters)
• Oil up ahead of OPEC meeting as dollar slips (Reuters)
• U.S. Met Secretly With Yemen Rebels (WSJ)
• Euro zone back to inflation as May prices beat forecast (Reuters)
• Patients Get Extreme to Obtain Hepatitis Drug That's 1% the Cost Outside U.S. (BBG)

We have long argued that the most likely endgame for Greece is that PM Tsipras caves to the troika, compromises on the government’s ‘red lines’ and risks a government reshuffle on the way to a third program, thus averting a euro exit and keeping Greece from descending into a drachma death spiral, even as the “solution” effectively strips the Greek people of their right to choose how they want to be governed — a tragically absurd outcome in what is the birthplace of democracy. It now appears that scenario is set to unfold.

The banking problems we see all over the world are a direct expression of the limits to growth, specifically the limits to debt creation. We can’t continue to borrow from the future to pay for our comforts and conveniences today because we have no real conviction that these debts can ever be repaid. We certainly wish we could, and the central bankers running the money system would like to pretend that we could by making negligible the cost of borrowing money and engaging in pervasive accounting fraud. But that has only served to cripple the operation of markets and pervert the meaning of interest rates — and, really, as a final result, to destroy any sense of consequence among the people running things everywhere.

• Senate lets NSA spy program lapse, at least for now (Reuters)
• Draghi Deflation Relief Means Little With Greek Threat Unsolved (BBG)
• Tepid factory data add to Asian gloom (FT)
• Citigroup Likely to Close Banamex USA (WSJ)
• Frugality of High Earners in U.S. Shows Long Shadow of Recession (BBG)
• Greece’s Tsipras Warns Bell May Toll for Europe (BBG)
• Carnegie Mellon Reels After Uber Lures Away Researchers (WSJ)
• Romário leads drive for Brazilian probe into Fifa (FT)
• Faster than China? India's road, rail drive could lay doubts to rest (Reuters)

Remember China's 6% crash last week? It is now a distant memory made even more remote thanks to the latest batch of ugly data out of China, coupled with hints of even more liquidity injections, which led to the latest surge in the Shcomp, an index that has put most pennystocks to shame. In Europe, the big story remains Greece, and as everyone expected, the doomed country and its creditors failed to make a deal on Sunday. This is after Greek Officials were said to have prepared a draft agreement, which was expected to be announced on Sunday. Not helping things, Greek PM Tsipras came out in fully defiant mode and accused bailout monitors of making “absurd” demands and seeking to impose “harsh punishment” on Athens. A bunch of final PMI number showed a modest improvement in the periphery at the expense of Germany whose deterioration is starting to be a concern.

Over the years, many have tried to prevent John Kerry from inserting his foot in his mouth and failed. Today, none other than Kerry himself achieved just that, both literally and metaphorically. America's Secretary of State went biking in the French Alps when he hit a curb, and broke his femur. Not to worry: he is expected to make a full recovery and was in good spirits, according to John Kirby. And just to make sure of that, US taxpayers will be invoiced a little over a million so that a specially equipped airplane picks up the SecState "to ensure he remains comfortable and stable throughout the flight."

Greece and its creditors are set to miss a self-imposed Sunday deal deadline as talks are still ongoing, an unnamed official tells Reuters. Meanwhile, Kathimerini says "government officials attending an emergency summit under Prime Minister Alexis Tsipras on Saturday prepared a draft agreement as Greek sources cited by the Athens-Macedonia News Agency indicated that negotiators in Brussels were close to a deal on value added tax, curbing early retirements and the gradual merging of pension funds." And so it continues.