Thursday, 14 April 2011

Greece Default?

With Portugal not having even completed their bailout terms yet, there's a growing, yet entirely inevitable, view that Greece is about to default.
The cost of insuring Greek debt has hit a record high on renewed fears the country will default on its borrowings. But support came from the head of the IMF, who insisted the embattled country would "make it".
Investors' flight from Greek government debt left 10-year bond yields at a new euro lifetime high of over 13pc and yields on two-year bonds at over 18pc, after Wolfgang Schaeuble said "additional steps" could be necessary if the European Central Bank concludes that the country's burden is unsustainable. l
Ireland is also in this 'default' territory too - there's no way they can repay under the terms imposed on them either. The Euro crisis therefore appears to be gathering pace.

The EU taxpayer will be footing the bill for this as German government economic advisor Lars Feld has warned; the European Central Bank has abandoned all pretence at being the guardian of sound monetary policy, along the lines of the original Bundesbank, as per the Maastricht Treaty. Instead the ECB has been buying up Greek and other government debt even when it is rated as junk - breaking every EU law going. The ECB is becoming, if not already, a bad bank and a Greek default is inevitable.

The EU elite is clinging onto their precious currency for as long as it takes, regardless of the economic consequences but the end is coming - "He will knock four times".

No comments:

Post a Comment