Economist: Is this really the end?

The Economist warns in their latest cover piece  “Unless German and the ECB move quickly, the single currency’s collapse is looming.”    We are beginning to think, based on last week’s failed German bond auction,  that if “Germany and ECB moves quickly” — i.e., fully monetizes bad debt that investors refuse to roll over — the single currency collapse (30 handles lower)  will accelerate.

Throwing water on a cooking oil fire will only cause the fire to flare up.   Debt monetization is not quantitative easing.   Holders of the Euro, especially in the core countries,  know it.  Someone should explain it to the analyst community.  We expect more capital flight out of Europe.

                              (click here if cover is not observable)

This entry was posted in Black Swan Watch, Euro, Sovereign Debt, Sovereign Risk, State and Local Government and tagged , , . Bookmark the permalink.

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 )

Google photo

You are commenting using your Google 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 )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.