germany, not greece, out of step with eurozone

It's Germany - not Greece, Italy, Portugal, Spain, France, or any of the over-indebted countries - that is out of step with the Eurozone.

They are alone in having an entrenched unwillingness to deal with over-indebtedness by printing money. That's partly because they aren't over-indebted (yet), and partly because they've had awful experiences with hyperinflation through money-printing in about 1930. Their stance is understandable, and even laudable, but it's also intolerable. They are dragging the Eurozone, and the rest of the world, down far sooner and harder than need be.

The deadlock in Europe would be better eased by Germany reinstating the Deutschmark, rather than Greece reinstating the Drachma.

This would remove the main impediment to "printing away" Euro-denominated debt. Such printing would also weaken the Euro against other currencies, and thus improve Eurozone export competitiveness and sales. Yes, the end result will be hyperinflation, but that's unavoidable anyway. It's driven globally by money-printing in the USA, plus devaluations against the USD of other countries' currencies to maintain competive pricings for their exports.

Germany will eventually be forced to dilute their currency regardless of what currency it is, because eventually no-one will be able to afford their expensive-currency exports. However, if they are too stubborn to acknowledge this, it's better that they go downhill alone, rather than take the rest of Europe - and the world - with them.

And it's urgent. It's one minute to midnight for stability in the Eurozone, and the world as an economically interdependent whole. Including the ASX...

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