Vice President of the Portuguese Socialist Party has been taped saying that default is a preferable alternative to dismantling the social safety net:
“We have an atomic bomb that we can use in the face of the Germans and the French: this atomic bomb is simply that we won’t pay,” said Pedro Nuno Santos, vice-president of the Socialist Party in the parliament.
“Debt is our only weapon and we must use it to impose better conditions, because recession itself is what is stopping us complying with the (EU-IMF Troika) accord. We should make the legs of the German bankers tremble,” he said.
Angela Merkel and the rest of the sanctimonious “Good Germans” can natter all they want about responsibility, but if one of the debtor nations says, “f%$#k you, we’re defaulting,” it’s game over for the German banking sector and their economy.
What the “Technocrats” and “Very Serious People” don’t realize is that their demands are going to make this scenario happen sooner, rather than later.
There is a saying, “If you owe the bank $1,000.00, the bank owns you, if you owe the bank $1,000,000.00, you own the bank.”
What continues to be denied is, default is inevitable, resistance is futile.
The pretense that there is a way out is amazing.
There is a way out, only it's the opposite of what people are expecting: You need to kick the Krauts out of the Euro, and everything gets fixed in pretty short order.