Quote Originally Posted by Banquo's Ghost View Post
Very unlikely, despite Chancellor Merkel's rather odd thinking-out-loud. The costs of replacing a currency are huge and need a long preparation time (the euro took over three years). The new D-mark would immediately appreciate which would make German exports far more expensive. Germany is already the euro's biggest creditor, so all her euro holdings would depreciate significantly as the euro crashed.

That's not to say it won't happen - as you say, there is a breaking point. But it won't be by German choice as leaving will be hugely expensive and would damage their economy for years to come.
It may be forced on Germany the 2013 date for scalping bondholders has basically sent them currying from Irish, Greek and Portuguese bonds.

What annoys me is why the ECB just didn't take the bailout money and ringfence any banks with EFSF money who had potential bad loans from Irish banks. It's a stitch up pure and simple the ECB and the elite is incapable of admitting that putting more debt on the Irish people will not save there own banks.