Vive la France (and Germany)

France and Germany are now insisting that Greece should stay in the Euro for their debt restructuring to hold.

The gun to the head is that a free-standing Drachma would be worth so little that it would be impossible for the Greeks to meet their immediate debt burden.

Hence, the ‘solution’, appears to be for the Greeks to stick with a hopelessly over-valued currency (for them) which will make it nigh on impossible for them to rebuild their economy.

So the risks to balance are a disorderly breakup of the Euro, which could trigger another credit crunch while the rest of us prop up the hopelessly over-exposed French banks, or the Greek economy gives up the prospect of getting back on its feet.

No question though of an orderly breakup of the Euro? Of course not. Vive la France (and Germany).