What’s going on in Merkel’s mind is the most interesting aspect of all this. She and Schaeble have both said NEIN to going over Germany’s existing 211 billion euro commitment. Both have consistently refused to accept “eurobonds” Both have said that the idea of a “big bazooka” is “silly” and indeed “stupid”. Various German banking worthies have also said “NO” to the ECB printing money (GOOD FOR THEM) and the German Constitutional Court has said “No more powers to Brussels without a referendum.”
BUT, UNLESS Germany IGNORES all that and (idiotically in my view) puts all her resources into a multi-trillion bailout fund then it seems to me CERTAIN that Greece and Italy will default, if not others.
Yet Merkel and her gang have ALSO said they will prevent the collapse of the euro. I CANNOT see how they are going to square this circle. Can anyone else?