Grexit: Remaining In The Eurozone Is No Longer The Base Case For GreeceBy Michael Snyder Over the next few months, a big chunk of Greek government bonds held by the IMF and the European Central Bank will mature. Unless negotiations produce a load of new cash for Greece, there will be a default, and right now there is very little optimism that we will see an agreement any time soon. In fact, as I wrote about the other day, behind the scenes banks all over Europe are quietly preparing for a Grexit. European news sources are reporting that the Greek banking system is on the verge of collapse, and over the past couple of weeks Greek bond yields have shot through the roof. Most of the things that we would expect to see in the lead up to a Greek exit from the eurozone are happening, and now we will wait and see if the Greeks actually have the guts to pull the trigger when push comes to shove. At this point, many top European officials are quietly admitting that it is more likely than not that Greece will leave the euro by the end of this year. The following is an excerpt fromthe Wall Street Journal article that I mentioned above Literally nothing has been achieved? That is not what the mainstream media has been telling us over the past few months. They kept telling us that agreements were in place and that everything had been fixed. I guess not. The Germans believe that the risks of a Grexit have already been priced in by the financial markets and that a Greek exit from the euro can be managed without any serious risk of contagion. So they are playing hardball with the Greeks. On the other hand, the Greeks believe that the risk of contagionwill eventually force the Germans to back down Anyone who toys with the idea of cutting off bits of the euro zone hoping the rest will survive is playing with fire, he told La Sexta, a Spanish TV channel, in an interview recorded 10 days ago. Some claim that the rest of Europe has been ring-fenced from Greece and that the ECB has tools at its disposal to amputate Greece, if need be, cauterize the wound and allow the rest of euro zone to carry on. In this case, I believe that the Greeks are right about what a Grexit would mean for the rest of Europe and the Germans are wrong. Once one country leaves the euro, that tells the entire world that membership in the euro is only temporary. Immediately everyone would be looking for the next Greece, and there are lots of candidates Italy, Spain, Portugal, etc. There is a very good chance that a Grexit would set off a full-blown European financial panic. And once a financial panic starts, it is very hard to stop. The danger that a Grexit poses is so obviousthat even the Obama administration can see it Meanwhile things continue to get even worse inside Greece. If you have any money in Greek banks, you need to move it immediately. The following comesfrom Zero Hedge And many Greeks dont even have any money to put in the banks because they havent been paid in months No matter what European officials try, things just continue to unravel in Greece and in much of the rest of Europe. We stand on the verge of the next great global economic crisis. The lessons that we should have learned from the last crisis were never learned, and instead global debt levels have exploded much higher since then. In fact, according toDoug Casey, the total amount of global debt is 57 trillion dollars higher than it was just prior to the last crisis The eurozone as it is constituted today is doomed. That doesnt mean that the Europeans are going to give up on social, economic and political integration. It just means that we are entering a time of transition that is going to be extremely messy. And once the European financial system begins to fall apart, the rest of the world will quickly follow. This article first appeared here at the Economic Collapse Blog. Michael Snyder is a writer, speaker and activist who writes and edits his own blogs The American Dream and Economic Collapse Blog. Follow him on Twitter here. 