Wednesday, May 16, 2012

Merkel Tells CNBC: Determined to Keep Greece in the Euro Zone

File under: Nothing is confirmed until officially denied.

In an interview with CNBC, German Chancellor Angela Merkel reiterated that Germany wants Greece to stay in the euro, but warned that the country must play by the rules and honor its commitments. Merkel told CNBC's Silvia Wadhwa, "I want Greece to stay in the euro. I think that would be good for Greece and for all of us."

LOL, Greece only stays in the eurozone long term if Germany gives the okay for the ECB to print more money to bail out Greece. Since the average German fears price inflation and ECB money printing accelerates price inflation, this is a no go long term (maybe even short term). Merkel will be booted out next year in elections if she gives the green light to money printing.

A top level observer of the global financial situation tells me that, short-term, a bail out is likely to occur, but very unlikely to be a long-term situation. Bottom line, Greece eventually leaves the eurozone. Perhaps followed by a full eurozone breakup.


  1. Ron Paul may not be President, but an EZ breakup would be a win for our side.

    Anytime decentralization of power occurs, we need to celebrate.

  2. Breakup of EZ - not necessarily, breakup of EU - certainly, break up of Schengen Area - very bad.

  3. Voters Tell Merkel: Determined to Keep Merkel Out of Euro Zone Decision