Failure to reach an agreement on Greece's bailout could result in rapid economic deterioration, geopolitical disruption and increased risk of terrorism in Europe and the United States, experts told CNBC on Wednesday.
Greece went into arrears Tuesday after failing to make a 1.6 billion-euro debt payment to the International Monetary Fund. The country has limited the amount of money Greeks can withdraw from banks as the country's financial institutions run dangerously low on cash.
The capital controls are just the tip of the iceberg, said Anastasios Economou, founder of international investment holding company iGroup. Greece's businesses are already finding it difficult to purchase products and have started turning down credit cards, and shortages of critical goods may come next, he said.
"At the end of the day you're looking at machinery, pharmaceuticals, fuel. All these are imported. Sooner or later, that guy that needs to make a payment abroad and can't will start facing shortages," he told "Squawk Box." "That's where I think you get the second wave, which is going to be even worse for the economy."
The Greek government on Wednesday said in a letter it was willing to make concessions in order to unlock badly needed aid that would allow it to avoid defaulting on a payment to the European Central Bank this month. However, Prime Minister Alexis Tsipras said the country would go through with an announced referendum on creditors' proposals, which would impose further austerity measures on Greece.
The referendum is largely irrelevant, said Economou, who also serves as the Young Presidents' Association's regional president for southern Europe. No matter the outcome, the Greek economy will continue to deteriorate as the country either fine tunes an agreement with Europe or plots its exit from the euro zone, he explained.
"The idea there is ... the "no" should get us more negotiating power," he said. "Europe doesn't see it that way, and I think it's very important that people understand that and make that distinction."