Greece Is About To Dance A Wild Sirtaki
On January 22, the ECB has another meeting, and investors – as well as EU governments – are still thinking Draghi will announce full-blown QE. With the Germans resisting the way they consistently have for years now, I wouldn’t count on it. It’ll be extremely hard to push through the German court system. But Merkel’s government still ‘leaked’ to Der Spiegel yesterday that a Grexit would have limited consequences. That’s just bluff, they’re scared sh*tless. They have no way of overseeing anything at all, no more than you or me.
But three days after the ECB meeting, on January 25, there are general elections in Greece, because PM Samaras wasn’t paying attention last month. And everyone’s very nervous about a Syriza victory, since that party is supposed to be extremely marxist, communist, Leninist, you name it. They will be called a lot worse names over the next three weeks, and if g-d forbid they win, much worse still. Syriza is calling the EU-ECB-IMF troika’s bluff. And they don’t like that one bit. And lest you forget, they’ve forcibly installed technocrat governments before. We can’t have the people speak.
Germany Believes Eurozone Could Cope With Greece Exit
The German government believes that the euro zone would now be able to cope with a Greece exit if that proved to be necessary, Der Spiegel news magazine reported on Saturday. Both Chancellor Angela Merkel and Finance Minister Wolfgang Schaeuble believe the eurozone has implemented enough reforms since the height of the regional crisis in 2012 to make a potential Greece exit manageable.”The danger of contagion is limited because Portugal and Ireland are considered rehabilitated,” the magazine quoted one government source saying.
In addition, the European Stability Mechanism (ESM), the eurozone’s bailout fund, is an “effective” rescue mechanism and was now available, another source added. Major banks would be protected by the banking union. It is still unclear how a eurozone member country could leave the euro and still remain in the European Union, but Der Spiegel quoted a “high-ranking currency expert” as saying that “resourceful lawyers” would be able to clarify”. According to the report, the German government considers a Greece exit almost unavoidable if the leftwing Syriza opposition party led by Alexis Tsipras wins an election set for Jan. 25.
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