Please read Warren Mosler's comments from his blog.
Merkel’s Coalition Steps Up Calls for EU ‘Orderly Insolvencies’
Posted by WARREN MOSLER on May 4th, 2010
It doesn’t get any more ominous than this.
This would insure an orderly default of the entire currency union.
Which is already in progress.
Germany is concerned that the Greek situation resulted in larger deficits for the other members, and wants something in place so defaults don’t result in this type of fiscal expansion for the rescuers.
If they are in fact looking seriously at this new proposal for a default friendly institutional structure its all coming to an end in a deflationary debt implosion, accelerated by their desire for the pro cyclical fiscal policy of smaller national government deficits.
The next event should be the bank runs that force a shut down of the payments system.
It’s a human tragedy that doesn’t have to happen. I’ve proposed two obvious and constructive fixes that are not even being considered. It’s almost like ‘they’ want this to happen, but I now have no idea who ‘they’ are or what ‘their’ motives are.
As always, feel free to distribute.