The heads of the 27 European Union member states meet later this week to discuss long-term economic policy. But the EU's field of vision remains occupied by how to resolve Greece's financial predicament. 

Although European Union commissioners are pushing for quick action on some sort of rescue provisions for heavily indebted Greece, Germany is still disavowing the need for any such proposal - especially one that would dominate the agenda of the March 25-26 summit of EU heads of state.

"There's no looming insolvency," Merkel told German broadcaster Deutschlandfunk on Sunday. "I don't believe that Greece has any acute financial needs from the European community and that's what the Greek prime minister keeps telling me."

But European Commission President Jose Manuel Barroso said on Friday that an EU standby aid package for Greece should be assembled "as soon as possible."

Asking for a hand, or a handout?

Greece may not be asking for immediate loans from its fellow euro-zone members, but it is hoping they can offer some security that would allow them to borrow money at less than the interest rates it is currently being offered.

The latest U.S. Treasury Z1 Flow of Funds report was released on March 11, 2010, bringing the data current through the end of 2009. What follows is the most important chart of your lifetime. It relegates almost all modern economists and economic theory to the dustbin of history. Any economic theory, formula, or relationship that does not consider this non-linear relationship of DEBT and phase transition is destined to fail.

It explains the "jobless" recoveries of the past and how each recent economic cycle produces higher money figures, yet lower employment. It explains why we are seeing debt driven events that circle the globe. It explains the psychological uneasiness that underpins this point in history, the elephant in the room that nobody sees or can describe.