It's not just the financial and economic world that's being turned upside down with fast changing events in motion that will impact for many years. Last week saw that maybe energy does not equal mass X the speed of light squared. Eeeek ! There goes Einstein's theory of general relativity and the past 100 years of physics (if true) over the event horizon and into a black hole, though the theory has always had something major missing which is why there existed the fundamental disparity between quantum mechanics and general relativity that maybe we will get much closer towards understanding if E=MC2 is busted.
Similarly the Euro-zone has reached the edge of its own event horizon of disappearing into a financial and economic black hole, the response to which is likely to be rampant Euro-zone money printing to monetize PIIGS debts that takes place following the orderly bankruptcy of Greece due to the impossibility of an economically contracting country being able to service an ever expanding debt mountain, a vicious cycle of ever higher debt to GDP triggering ever greater economic austerity, resulting in an even higher debt to GDP ratio as the economy contracts and the tax take falls.
Key measures being contemplated at the time of writing are :
Greece debt holders to take a 50% hair-cut i.e. cut Greece debt from Euro 340billion to Euro 170billion.
Cut the interest rate PAID on Greece debt, perhaps to even ZERO.
Expand the financial stability fund from 440 billion euros to at least Euro 2 trillion and perhaps even Euro 3 trillion by leveraging up by ECB money printing.
Re-capitalise the bankrupt European banks that would take a huge hit on a Greece default.
