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.

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