Britannia Radio

Sunday, November 02, 2008
The Euro Is Disintegrating
Talk on the street points out that events are fast moving against the Euro as it approaches inevitable disintegration. Not only excitable bloggers are saying it now but also mainstream financial media, such as the Wall Street Journal, the Telegraph and The Economist.

See these extracts -

The front page of the WSJ notes that "Investors are upping their bets that as the $12.2 trillion euro-zone economy heads into recession, costly bank-bailout plans could drive some European governments to default on their debt." It notes that the cost of insuring the government debt of Italy and Greece has doubled in the past month. For Ireland, the cost of insuring against debt default has risen eightfold since the start of the year. The article notes that another indicator of rising investor concern is the gap between the yields on the bonds issued by Germany and countries with lower credit ratings, such as Italy and Greece. Those have widened to levels not seen in about a decade, before the launch of the euro.

Ambrose Evans-Pritchard notes in the Telegraph that "The interest spread between Italian 10-year bonds and German Bunds has reached 108 basis points, the highest since the launch of the euro. Traders say it is nearing levels that risk setting off an unstable chain reaction."

There is nothing to add - only that Europe's EU fantasy is about to be blown to pieces. After 50 years of trying to force the independent countries of Europe, through a process of deception into a single political entity, the impossibility of the whole enterprise is about to become blindingly apparent.

Tin hats on. The Euros finished. The EU is finished. Europe is about to be free again of the last vestiges of the totalitarianism that has throttled it to near economic extinction. Roll on the blast. It is inevitable. It's here. The effects will be painful for all, but once it's all over, like a patient being sick, Europe can then start itself on the road to recovery. But first the crash of the Euro will set the political action into play.

Posted by Britannia Radio at 18:23