Wednesday, August 15, 2012

Looks Like Maybe the Germans Have Finally Had Enough

EuroAnd you thought the only news from across the pond was about the Olympics. Not hardly. And you thought the only news from across the pond was about the Olympics. Not hardly. Resistance in Berlin: Merkel's Room for Maneuver with Greece Shrinks - SPIEGEL ONLINE

The Greeks can't keep their promises. The Greeks need more money. The Greeks are going to (or already have) asked the Germans for more money. The German Chancellor, Angela Merkel, is out of options.
'There Can Be No Renegotiations'

This time, the head-shaking isn't just happening among the notorious euro-bailout rebels within the conservative block. "The government in Athens must fulfill its reform requirements," said Stefan Müller, the parliamentary secretary for the CSU's state group. For members of his party in the federal parliament, he said: "There can be no renegotiations of either the content or the time span. Each week of extension for achieving the deficit target costs taxpayers money." He also said it would be the "wrong message entirely" if concessions made to Greece then prompted other crisis-stricken countries to demand renegotiations of the terms of their own bailouts. Meanwhile, the FPD's general secretary, Patrick Döring, told the daily Die Welt: "The FDP will not allow itself to be a part of a loosening of a valid contract."
So talk of the Grexit - the Greek Exit from the Euro - is finally reached the European Halls of Power. (Denial ain't just a river in Egypt.)

Commentary: Bankruptcy Is the Only Thing That Can Help Greece - SPIEGEL ONLINE
If it was ever the goal of Merkel and her allies to rescue Greece from bankruptcy, then they have failed. The only thing the drastic austerity measures have done is to exacerbate the economic crisis and push Greece's debts even higher. Nevertheless, the creditors have insisted on moving forward with their plan -- even though it already became clear long ago where it was heading.

The end of this approach now appears to have been reached. Neither euro-zone countries nor the IMF can provide Greece with more aid without sacrificing their own credibility. Given these circumstances, there is only one option left: Greece must go broke.
The Greeks were better off outside the Euro zone. Once the dust settles they will be in a better place than they are now, though given the state of things, that will take a very long time. Let's remind everyone that Greece LIED about the levels of their yearly budget deficit as well as the true size of their outstanding debt in order to get into the Euro, and have never met the minimum requirements for Euro membership. They should leave.

I'm sure there is news from Spain if I look....

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