Posted by Karl Denninger
The euro fell from the session high against the dollar and Swiss franc on Wednesday after Greece categorically denied market rumors which said it was considering leaving the European Union or the euro zone.
Of course that didn’t take long to be “officially denied”:
“We categorically deny any thought of leaving the European Union, or the euro zone,” said government spokesman George Petalotis.
Then you have no chance.
Let’s be clear: The only way to do this is by surprise. Unilaterally, without any discussion with anyone else. Just like Germany did.
And Greece should do it right here, right now, today.
Nail those European Banks that played “too cute by half” and bought Greek debt expecting an intervention and “sticksave”, then effectively extorted the Eurozone nations into providing it, exactly as happened here in the US with Fannie and Freddie paper.
Note that Spain was unable to make its debt auction yesterday; they are thus going to be unable to fund the alleged bailout. As such the promises Greece was made are in fact empty, and intended to screw the Greek people and their government.
It is time for someone to stand up and say in return “screw you!” to such tactics. Germany has laid the groundwork, now Greece needs to deliver the “coup de grace” to Sarcozy and his butt-buddies in Brussels.
Depart the Euro and at the same time declare by fiat all Euro-denominated Greek debt held by anyone who is not a Greek national (or a Greek-chartered bank holding said debt entirely within Greece) worthless.
Such a unilateral action would instantaneously detonate a lot of banks in Europe and would put the ECB into an untenable position, as they have been accepting “repos” against Greek debt (along with direct purchases) without regard to actual credit quality.
It would also free Greece from a debt it cannot pay, totaling some €300 billion.
With that wiped off the table Greece would of course have to live within its taxing resources immediately and permanently.
That has to happen anyway, and is the entire premise of the purported austerity measures. Do it now and get it over with, while at the same time refusing to pay one penny of interest nor one dime of principal on the debt outstanding at this point.
If the Greek people are going to bear the costs they should get all the benefits, not the international banking cartel.
There’s not a thing that the world could do about a move like this, but it would put a spike into the bankster concept of looting both citizen and sovereign alike without regard to the consequences.
IT IS TIME FOR A NATION TO STAND UP AND DO IT, AND GREECE IS IDEALLY POSITIONED TO DO SO.