The efforts of Germany & France to firewall or more accuretly burn down the PIigs is a form of protectionism.
Any country defecting from the euro would immediately draw monetory resourses away from the core via tourists / exports etc and drive up the cost of capital for Germany’s remaining petro reexport industries.
This is a crisis of the cores Industrial policey pursued vigorously since 1987.
We dumb ducks have very little to do with it – we are merely the Fois Gras Ducks that I am afraid are on the main course as we lack the balls & Brains to fight this neo mercantilism that has destroyed the living standards of many decent but deceived German Proles also.
Greece is a disaster. Re ” What about leaving the Eurozone? Euro exit followed by a sharp depreciation could achieve the relative wage and price decline that Greece needs, and achieve it faster. ” Not only that, but alongside reform it could unleash a wave of free enterprise as happened in China. Instead, any debt/growth is a function of the ECB debt extraction agency in the manner of a China under Mao but this time operating as a variant of socialism for the banks. Greece is nominally tied to an exchange rate it cannot afford. Add in austerity under the above and what you have is a walk down the road to default. Greece is paying the price of a eurozone in disarray that will come apart in due course. As in Ireland, the people are paying second fiddle to financial interests of the banking elite who’ve wrecked the country aided by ECB who knowingly lent to institutions, in a manner certain to fail. Goldman Sachs helped hide the schenanigans . Government arms contracts with France fed the mirage.