Terrifying article in Spiegel about the lack of any sensible options for the Eurozone. Time for Plan B: How the Euro Became Europe’s Greatest Threat.

I’d be keen on a nuclear option, because at the moment, it appears that the main effect of the pressure on countries such as Greece is a transfer of monies from the public to the financial sector (even German banks have been reducing their holdings of Greek debt; who holds it now? Central banks, i.e. the public). The nuclear option may be horrific, but at least it would rebalance the power relationship back towards governments.

Similar, if smaller-scale issues with the PFI scheme in the UK. Terrible to have a hospital reduce staff and services to pay for its building cost. How did the business plan get approved? Do other infrastructure projects have inflation-linked increases for sunk costs?