In an earlier posting, I stated that Greece would and needed to default. This is an inevitable outcome based on the fact Greece can not possibly continue service it's sovereign debt; even if the debt is halved.
The country simply cannot generate enough GDP with the current austerity measures in place.
Now it looks likely that Germany is getting ready to jettison Greece. German Chancellor Angela Merkel has warned Greece it must make rapid progress on its second rescue package in order to receive further aid, including reaching agreement with private bondholders. This appears to be a clear statement by the "German Federation of Europe" that they are no longer willing to provide further financial support for Greece unless it meets some impossible conditions.
I say impossible because the Greek people are already suffering more than they can bear after a series of crippling austerity measures, so it is unlikely that they will meet the new conditions set - and Germany knows this.
Given this fact, it seems likely that Greece will leave the Euro on or before 20th March 2012. This date is significant as this is when Greece must pay back a €14.4 billion bond.