euro's suicide, round II

With Irish and Greek yields soaring EURO's suicide is back on track:

source FT

Yields on Greek 10-year bonds spiked to 11.34 per cent on Friday, approaching the historic highs of last May when the country had to be bailed out by the European Union and International Monetary Fund to avert a sovereign default.

Not to forget Portugal; so much for the outcome of the rescue package; nevertheless the ECB now has €64bn in hands to buy more of the same junk. No reason to be criticising the FED and its $600bn package doing just the very same; they all hang on the drip called Ponzi™ with the US hating the EURO crisis as it gives them a huge problem in trying to devalue the greenback and inflate the market; times of easy Dollar adjustments like Ronald Reagan did it are long over with.

China buying into EUROland spending its Dollarpaper will retard the lingering illness and increase its influence on the losers while at the same time German's export bonanza goes on using the same Irish, Greek and Portuguese currency that is in its final throes.

Don't anybody worry: the G20 will sort it out; this week, here on this planet; stay tuned!

Carpe diem!

in principle it is clear...

what went wrong!

This might be amusing in parts; it wraps up the truth though!






Carpe diem!

greek times in piigs' land

Did anyone notice?


All these ECB, IMF, FED, BoE and more activities to fill holes and bridge gaps, alter accounting rules, invent pseudo-new measurements, install relief valves or boosting pumps, bad banks or stimulation packages - all this will not solve any of the system’s basic failures. It won't make a blind bit of a difference.

If it is not Greece that threatens to face the world’s economies with sudden death it will be any other one of the PIIGS, or Japan, or Belgium, or in fact just name any country; you will hardly fail to hit a “fit for failure” candidate.

What would it take to put a country like Greece back on track (if it ever was on one)?

That's simple: in today’s world it would be a competitive currency that allowed Greece to offer cheap labour; they would have to have low cost energy and affordable commodities at hand; a well-trained, skilled and willing workforce would be next on the wish list to not only fight but win the battles against countries like China, India, Russia…; of course, its domestic infrastructure from roads to collecting taxes would have to be sound and in working condition.

It is a pity that at the same time and just by chance every single one of the fellow countries are on the same trip enhancing the battles even more for exactly the same golden pitchers: labour, energy, commodities: growth for growth sake while facing the limited horizon of what can be stolen from the rest of the crowd.

That’s all daydreaming; in reality we have gone too far into that cul-de-sac that now does not even allow turning.

Carpe diem!