Greece has just put a spending moratorium in place and will now spend only for salaries and pensions, freezing payments for everything else, which presumably includes vendors and debt payments.

They will increase spending only when the next bailout money arrives, and that may be never.

Now Germany is in the ludicrous position of having to make a decision that will either give Greece more money or force them out of the eurozone. Germany does not want to pony up more money, nor does it want to be accused of forcing Greece out of the eurozone, yet those are the only choices.

OK chancellor, pick your poison.

Much of the problem with the Euro crisis is the big financial institution’s insistence on not taking write-downs on the bonds they bought and “investments” they made which they knew were dicey at best. Thus the governments loan money to failing institutions who promptly uses it to take back debt – but they’ve taken on more debt to do it. So the cycle continues.