Posted on 07/29/2012 3:55:35 PM PDT by bruinbirdman
Mario Draghi has promised the moon. The European Central Bank’s council had better deliver on his pledge this week. If it does not, the crisis will surely escalate out of control in August or soon after.
We are beyond the point where a quarter point rate cut will achieve anything. Nor will it help to launch a fresh round of "temporary and limited" bond purchases - to use the self-defeating language that Mr Draghi is forced to utter.
The only issue that matters at this late stage is whether Germany is willing to let the ECB step up to its responsibility as a global central bank after two years of ideological posturing and take all risk of sovereign default in Spain and Italy off the table - which it can do easily enough once it stops playing politics and obeys the “financial stability” clause (Article 127) of the Lisbon Treaty.
That is to say, whether Latin states are willing to mobilize their majority power on the ECB’s council to force change in policy over German protest, or lamely let themselves be picked off one by one in serial disasters like the death of the Gold Standard in 1931.
Failure to halt a full-blown debt debacle in Spain and Italy at this delicate juncture - with China, India and Brazil by now in the grip of a broken credit cycle and the US on the cusp of fresh recession even before the “fiscal cliff” hits - would tip the entire global system into a downward spin, triggering the sort of feedback loop that caused such havoc in late 2008.
As the International Monetary Fund warns in its Article IV report, “the euro area crisis has reached a new and critical stage … raising questions about the viability
(Excerpt) Read more at telegraph.co.uk ...
War in Europe by the end of 2013.
Yeah, I’m a broken record, but this ain’t ending any other way.
It should be interesting watching a bunch of Euro weenie armies bitch slapping each other with completely hollow forces that have absolutely NO logistical capabilities.
It really doesn’t help that Mario Draghi sounds like a James Bond villain.
Hugo Drax
Aristotle Kristatos
Emilio Largo
Anton Murik
Tamil Rahani
there will not be a war between euro countrys
War between...???
printing massive amounts of worthless paper is supposed to save them?
they will yell at each other and call each other names. It will go down in history books as the Hot Air War.
An ancient pattern whose instant replay is pretty much guaranteed now.
Egging it on will be the Muslim immigrants, who will likely be eradicated yet again.
Buy popcorn.
With not enough folks showing up to watch the Olympics. The British military has been ordered to fill the empty seats. Guess they rather do that than to dodge bullets.
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