RSS

Germany’s Dilemma

28 Dec

From “The Telegraph” – “Italy sold €9bn of six-month bills at an average rate of 3.25pc, down from euro-era highs of 6.50pc at a similar auction last month. Demand also rose, with 1.67 bidders for each bond, compared with 1.47 in November.”

“These actions in reality makes the problem worse by creating a greater solvency issue with the ECB – which when push comes to shove the German people will not backstop, hence the Euro is no longer a safe currency.” (BLOG COMMENT)

This is the big and in fact ONLY question. Many think Merkel will in the end have NO CHOICE. The EU political elite has manoeuvred Germany into a position whereby if Germany doesn’t backstop the ECB then the latter will eventually default. The “markets” clearly think this otherwise they wouldn’t touch Italy with a gondola pole …..

Very clever ….. if the Germans DON’T step in then they get the entire blame ….. with insults ranging along the whole spectrum from “un-European” to “Nazi”.

Advertisements
 
Leave a comment

Posted by on December 28, 2011 in European Union, Politics

 

Tags: , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: