Thursday 1 December 2011

Twilight of the Gods

The eurozone saga has had more twists and turns than Wagner's Ring.  Now we are in the final act.  Will Merkel ride into the flames taking Europe with her?  Next week's meeting of EU leaders will be the crunch.  Unless there is a dramatic U turn in Germany's opposition to the role of the ECB as a lender of last resort and the issuing of stability (euro) bonds, the financial markets will call 'time' on the euro, sovereign debt will become unsellable and the economic outlook will take an even greater turn for the worse.  The lights will indeed be going out all over Europe and the rest of the world for that matter.

As I mentioned yesterday the intervention of central banks to pump liquidity into the system merely buys time for Europe to begin to sort out the mess.  The omens do not look good.  For the 'gods' of Europe, the political elites of nations and the European Commission commissars, the game will be up.  Civil unrest on a massive scale will spread across Europe.

See:

http://www.telegraph.co.uk/finance/comment/damianreece/8926896/Central-bank-deal-should-remind-eurozone-leaders-of-looming-disaster.html
http://www.telegraph.co.uk/finance/financialcrisis/8926987/Fed-saves-Europes-banks-as-ECB-stands-pat.html
http://www.telegraph.co.uk/finance/financialcrisis/8927169/Debt-Crisis-US-rescue-act-is-a-sign-of-the-mess-were-in.html
http://www.telegraph.co.uk/finance/financialcrisis/8927918/ECBs-Draghi-We-need-fiscal-union-not-bank-intervention.html

http://www.spiegel.de/international/business/0,1518,801071,00.html

http://www.bbc.co.uk/news/business-15984291
Bank of England warning on eurozone.

http://www.bbc.co.uk/news/business-15981629
ECB concerns

http://www.spiegel.de/international/europe/0,1518,801156,00.html
Another chink of light?  But too little far too late?

For a different viewpoint on the EU see:

http://blogs.telegraph.co.uk/news/petermullen/100121010/if-christianity-goes-so-does-europe/

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