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Monday, May 14, 2012

The End Game For Greece

Markets are falling and Greek debt yields are rising as a result of the failure of Greece to form a government. and the increasingly hostile attitude to Greece continuing to remain in the Euro from other Eurozone nations.

To add fuel to the fire Greek government spokesman, Pantelis Kapsis, has told the media that no decision has yet been made on repaying May 15 bond. This implied threat of default is Greece's attempt to raise the stakes in their game of poker with the Eurozone.

Finance ministers from the 17 Eurozone countries will meet this afternoon at 4pm GMT for talks that, one senior EU official told the Wall Street Journal, would be "very political".

It is clear that Greece will leave the Euro, it is not clear when this will happen. However, as and when Greece leaves, it will timed to "surprise" the markets and the population of Greece so that the necessary controls (eg prevention of mass capital flight) are in place.

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