Mike Shedlock

Greek elections are set for June 17th following the impasse of the last election where no majority government formed.

The "Destroy Greece to Save the Euro" clowns led by German Chancellor Angela Merkel are out in force hoping to turn the vote into a direct referendum on the Euro. The election is of course a direct referendum on the Euro, but Greek citizens are under three Fantasyland ideas.

Three Fantasyland Ideas

  1. The euro is a good thing for Greece
  2. It is possible for Greece to stay on the euro but default on debt
  3. Greece can recover in the eurozone

Merkel is doing her best to convince Greeks that number 2 is not possible and she is correct on that score. She is also promoting the Fantasland positions numbers 1 and 3.

Merkel Asks For Greece Referendum on Euro

MarketWatch reports Merkel Asks For Greece Referendum on Euro.

Germany’s chancellor reportedly proposed on Friday that Greece hold a referendum on its membership in the euro currency area, increasing pressure on the nation just as Group of Eight leaders are set to discuss the region’s debt crisis this weekend.

In a phone call with the Greek president on Friday, German leader Angela Merkel suggested that Greece could have a referendum on the euro when it holds national elections in June, according to media reports, citing a Greek government spokesman.

Whether she actually did make the proposal is in doubt — her spokesman denied it, but the Greek official then reiterated that Merkel made such a request.

Merkel Yields on Growth Measures

As a matter of political expediency (or do I mean political suicide) Merkel-Hollande Meeting Yields Greece Growth Signal

Mike Shedlock

Mike Shedlock is a registered investment advisor representative for Sitka Pacific Capital Management.
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