January 19, 2009

Two writers, same question

Strikingly, Liam Halligan and Ambrose Evans-Pritchard end their Sunday articles with the same issue. Both are worth reading in full, but you have to look for them in the Telegraph's Business section.

Halligan starts with the UK banks issue and repeats his contention that banks must be made to confess all the over-valued toxic assets they have on their books. At the end he turns his attention to international markets, and concludes
This column has long questioned the eurozone's long-term survival. Now global markets are doing the same. At the start of last year, the average 10-year government bond yield among the weaker member states (Portugal, Greece, Spain, Ireland and Italy) was just 25 basis points above the comparable number in Germany. That spread is now six times bigger.

Credit default swaps (the cost of insuring against a government default) among the most feckless eurozone members have reached Latin American levels. Would French and German taxpayers bail out another eurozone member? The longer this crisis goes on, the larger that incendiary question looms.
Just next to him, Ambrose writes that monetary union has left half of Europe trapped in depression. And he concludes that
Traders suspect that investors are dumping their Club Med and Irish debt immediately on the European Central Bank in "repo" actions.

In other words, the ECB is already providing a stealth bail-out for Europe's governments – though secrecy veils all.

An EU debt union is being created, in breach of EU law. Liabilities are being shifted quietly on to German taxpayers. What happens when Germany's hard-working citizens find out?
It's as if we're watching a speeded up film.

P.S. Today Ambrose reports that in Ireland "as yet, there is no public support for withdrawal from the euro".

1 comment:

ATFlynn said...

This situation has been on the cards since the EU expanded and the Maastricht Treaty was signed in 1991. And then the very next year, 1992, Britain leaves the ERM.
This is not a history lesson, so at this point it is time to conjure-up a remedy out what we find abandoned by our great leaders for this nonsense they seek to impose. It looks to me as though Brussels wants to build a European Socialist Party with enough power and the hangers on from other parts of the world, so that they can impose their Will upon all other groups.
As things stand, Europe is in such a mess which ever way you look at it, the only thing for the People, and that means the Taxpayers, is for them to abandon their National Governments, change the way they are employed so that they can quite legally avoid all direct Taxation from any part of Europe and then just start again.
Here in Britain, I propose using the Parish and Town Councils to organise the payment of Local Taxation and the County Council system to administer the funding of all Public Services.
And another thing this bunch of would-be World Leaders have foisted on the People, "Human Rights". I have nothing against HR. at all. Only in my book, HM. begins with the Taxpayer who pays the Bill. And what I propose will give the Taxpayers of Europe, the power to dictate the spending policy for all European People.
Enough for now, but the URL I have posted, has a link to my 3 or 4 Blogspots.
Regards, ATFlynn "Norfolk's Mutineer"