From Market Oracle
By Gary North
''We are expected to believe that a collapse of the eurozone is possible. This might mean the destruction of the euro, which would fall to zero value. What could cause that? ECB inflation. This is scenario #1.
On the other hand, there is scenario #2: the collapse of the eurozone might mean the departure of Spain, Italy, and France, which would cease paying euros on their IOUs. That would mean huge losses for commercial banks in every nation, and huge losses for the ECB, which is loaded with these IOUs.
What can prevent the latter? The former. To keep the governments of Spain and Italy solvent, meaning able to make regular interest payments on their IOUs, the ECB must buy their IOUs with newly created euros.''
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