Massimo rang from Over There to say the EU meeting in Brussels just broke up and he would call tomorrow with news, Ciao. Not helpful. From what is being bandied about is that the Euros have somewhat agreed to somewhat of a closer fiscal union that is somewhat along the lines of Frau Merkel's thinking. Frau Merkel sounded pleased about an hour ago. Of course the elephant in the room is Greece and nothing has happened there as the troika is, at this hour apparently still in Athens and, "In discussion," which is the diplomatic way of saying engaged in a shouting match.
The Germans managed to leak the news that if the Greeks really want to continue to receive aid from the Troika than what will be needed is for them to accept a consideable amount of direct control over their fiscal activities from the EU which received somewhat of a less that polite response from the Greeks. This is getting deeply into the sovereignity of an independent state and a proud people. This is heavy stuff.
More importantly, I am beginning to wonder whether the Greeks really care much anymore as as each day passes it becomes apparent that an orderly default is very much more favorable to the Euros than to the Greeks and to essentially ceed sovereignity to the EU (Germany) would result in more austerity, more misery and on top of it all, shame. I find it very difficult to believe that if this is the price for an "organized default" such a thing is never going to happen. And yet, it appears this is the only way to involve the public sector (the ECB) in a bond exchange and further funding if the reports are correct. I have more to say but I'm going to wait for reports tomorrow rather than speculate, but so for it appears that Frau Merkel has performed a brilliant operation which just may have placed the patient in cardiac arrest.
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