Angela Merkel, German Chancellor, wants Greece to default on its loans and leave the Eurozone according to sources who spoke on condition of anonymity because the proposal is still being negotiated at the ECB/IMF/EU level for implementation.
The information obtained about how to push out Greece was confirmed yesterday by a reliable source at the Deutsche Bundesbank.
Germany proposed a plan to force the Greek Parliament to surrender its financial and budget decision making rights to a new commission under the auspices of the EU and led by Germany two weeks ago as reported by the Financial Times.
It is therefore not a surprise that Mrs. Merkel pursues the goal of pushing Greece out to save the euro.
We were also told that Mrs. Merkel does not trust Antonis Samaras, Greek opposition leader, for several reasons.
Mr. Samaras held a secret meeting with Mr. Putin and several executives of Gazprom to discuss a rescue plan through direct Russian investments, primarily pipeline access to the Mediterranean for natural gas and LNG.
In exchange Greece would receive funding for infrastructure projects as well as more access to the Russian market for its agricultural export products.
We also received confirmation that Mr. Samaras was instrumental in passing the austerity packages to satisfy the Troika requirements but will call for new elections as soon as the next 130 billion euro tranche is received.
That in itself is a sign that despite the promise of adhering to the terms and conditions of the continued bailout, that the new Greek Parliament led by a coalition of Mr. Samaras party and the labor party, according the polls, will never implement the austerity packages.
Our analysis based on the confirmed information received from our sources leads us now to give credibility to the role Germany is playing in the Eurozone with the silent backing of France and through Mr. Sarkozy, French President.
It is also clear that Mrs. Merkel wants to save Italy and Spain by forcing Greece into default and therefore oust the country altogether.
It is not a coincidence that Germany passed up on the possibility of presiding over the ECB by pulling their heir apparent, Alex Weber, to make room for a straw man that could easily be managed.
Greece finds itself between a rock and a hard place with no way out except leaving voluntarily through a selected default and in an orderly fashion or be pushed into a full default.
Rumors, although unconfirmed at the time of writing, indicate that the IIF, The Institute of International Finance, is being pressured not to accept the proposed “haircut” which would put more fuel on the burning Greek fire and push the country closer to a disorderly default.
Written by Nick Doms © 2012, all rights reserved.
Comments