We seem to be entering dangerous new territory here, on the one hand we have the European commission following it's agenda to create a European superstate trying to introduce European wide taxes and regulations and now we have the Euro Zone headed by France and Germany trying to build a state within a state excluding the 10 members who are not in the Euro from decision making but requiring them to follow regulations made by them. Merkel and Sarkozy are taking Europe down a dangerous road rather than create a stronger more co operative Europe their actions could lead to the breakup of the Union and armed conflict. History will not thank or forgive them.Everyone, all of them, to a man (and increasingly, to a woman) are fighting their own national corners. Sarkozy and the French are determined that Greece will not go under. Not in the interests of the Great European Brotherhood of Nations, but to protect the French banking system which dies along with Greece. Merkel and the Germans will sell their grandmothers if it will ensure the survival of the Euro. Not for the Great European Dream, but because the Euro is grossly undervalued for the Germany economy, allowing them to export competetively. Something they would find it very difficult to do with their own currency. Barroso the Cork Salesman is an ardent European, not because he loves waving the Star Spangled Sphincter, (he would much rather be waving the Bright Red Worker's Flag) but because he knows that without it all that is left for him and his bankrupt country is destitution, ignominy and a return to third world status. The list goes on, but somehow seems to miss the United Kingdom, which is woefully short on British interest.I suspect money is secretly being printed and moved around to prop up Greek banks and maybe other European banks too. The Fed's enforced audit published recently shows they already disbursed at least $16 trillion (some reports claim as much as $23 trillion) to various establishments around the globe. Merkel et all look much too smug to me and they know public anger is growing, particularly in America, is growing by the hour.
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German Chancellor Angela Merkel rejected the option of a Greek default, saying that it would have incalculable consequences.
Merkel said that she can’t listen to economists who urge a Greek default now.
Speaking today to members of her Christian Democratic Union in Magdeburg, eastern Germany, Merkel said that she won’t risk embarking on an “adventure” to solve the debt crisis.
Read more: Merkel: Greek Default Would Have Incalculable Consequences
Important: Can you afford to Retire? Shocking Poll Results
Warnings from Ackermann
With the Greek economy stuck in recession, however, and the country's budget deficit not falling as rapidly as hoped, there are concerns that Athens will need much more than €109 billion. Consequently, European officials have floated the idea of revisiting the 21 percent private sector contribution -- with some having proposed raising it to as high as 50 percent.
Dexia, which holds some €3.8 billion worth of Greek sovereign bonds, would almost certainly be unable to survive such a writedown. Investors have fled the bank as a result.
Ackermann has been vociferous in warning against revisiting the 21 percent agreement, a position he reiterated again on Tuesday. "I personally am very convinced that any short-term restructuring of Greek debt could provoke a contagion which would need much higher ring-fencing ammunition for other countries," he said at a London conference.
LUXEMBOURG—The admission by top European officials that Greece's fiscal distress is deepening has increased the chance that a July deal to give Athens more cash could be revised to exact a greater toll on its private-sector creditors. At a two-day closed-door meeting here that ended Tuesday, European finance ministers debated what to do with their sickest patient. No decisions were made, but the notion of bigger losses for creditors was broached, people familiar with the matter said. The reappraisal is the consequence of an unpleasant reality: Greece is missing its budget-deficit target and will likely need additional rescue money to plug the gap. Demanding more pain from private bondholders could be a way to do that. If European governments take that step, it risks heightening worries about banks and other indebted economies, further upsetting financial markets. Keeping such contagion under control means governments are also discussing how to build a firewall around Greece, for example by providing more funds to help other countries pay their debts and support their banks.
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