another excellent article from Ambrose Evans-Pritchard even if I don't agree with him that Ireland will be able to tap the gigantic black hole its banks have created.
EMU policies are pushing Southern Europe into systemic political crisis
Let us assume for the sake of argument that Europe succeeds in containing the immediate EMU debt crisis, with help from Asia, and that Germany’s fractious coalition actually agrees to a bail-out fund big enough to make any difference.
What does this achieve, other than allowing banks to buy time by offloading liabilities onto European and Chinese taxpayers?
The 30pc gap in labour competitiveness that has built up between Germany and Club Med since the eurozone currencies were locked together in perpetuity will remain.
Greece, Portugal, Spain, and Ireland will stay trapped in structural depression through this year, and well into next, rotating from a liquidity crisis to a chronic political and social crisis that exposes the inability of elected governments to counter 1930s job wastage. Unemployment is 28pc in Andalucia, and 30pc in Cadiz.
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