How to Profit from Greek Strikes, Possible Default (DRR, UUP, IXG, IPF)

In what is becoming an all too familiar occurrence, on Wednesday millions of Greeks took part in nationwide strikes, with thousands taking to the streets in protest against further austerity measures. The Greek government says that the new round of austerity measures is needed in order to receive further aid from the International Monetary Fund (IMF) and the European Union (EU). Without the international aid, the Greek government will not be able to pay its existing debts and will likely default, which would have ripple affects throughout the international banking system and could prove devastating to the euro currency. The proposed measures include new taxes on everything from civil servants' pay to swimming pools and yachts, as well as the sale of state-owned assets and reducing the number people working in the generous Greek civil service system. There is growing anger among the Greek populace towards the government's attempts to reduce spending and increase taxes. After more than a year of austerity measures, they see no benefit for themselves and feel that the government is more concerned about the welfare of international bankers than that of its own citizens. With Prime Minister George Papandreou's Socialist party falling behind in opinion polls and holding just a slim majority in Parliament, it's still uncertain whether or not the latest round of austerity measures will even pass a parliamentary vote. One of the tactics used by the protestors is to prevent a vote on the austerity measures in Parliament from even taking place. A large group of protestors attempted to block legislators from entering Parliament on Wednesday in order to stop the debate on the austerity measures before it even started. Police had to put up a barrier in order to allow members of Parliament to enter the building to discuss the controversial measures. Police used tear gas in an attempt to disband the protesters, many of whom were throwing rocks at the police. All this does not bode well for the future of the euro, as with each passing day it looks more and more likely that Greece will default on its debt. Although officials across Europe claim that they won't allow a default to happen, rating agencies like Standard & Poor's and Moody's Investors Service continue to downgrade Greek debt, which has led to yields on Greek bonds reaching unsustainable levels as high as 17%. Investors who feel that a Greek default is inevitable may want to act now, while the final outcome is still uncertain. The Market Vectors Double Short Euro ETN DRR should climb higher in the event of a Greek default because if Greece falls, the euro may follow. The PowerShares DB US Dollar Index Bullish UUP is another investment to consider because investors may move from euros to US dollars if the viability of the euro comes under question. If Greece and the European Union are able to put together a plan that prevents a default, international banking stocks will be sure to benefit, so the iShares S&P Global Financials IXG and the SPDR S&P International Financial Sector IPF are two ETFs worth considering if you feel that the stakes are too high for the European Union to allow one of its member states to collapse financially.