The euro “irreversible”? I’ll be dipped!

25 July, 2012 at 10:27 | Posted in Economics | 1 Comment

The Spanish and Italian yield curves look worrying all over. 10-Year Yields day after day over 7%  is no good sign.  On the contrary. Everything indicates that these countries are in for a long period of recession. They have no growth. Debt servicing is rising. And the 10-Year Spread against Germany widens and widens. There are today every sign that the euro crisis is spinning out of control. And that  the GIIPS countries’ lack of monetary sovereignty will lead to the downfall of the euro.

And still the  euro zone is said not to be in danger of breaking up according to European Central Bank President Mario Draghi. Interviewed in Le Monde Draghi says that

l’euro n’est absolument pas en danger et la monnaie unique est irréversible.

I’ve lost count on how many times we’ve heard that before. And still things keep on getting worse and worse …

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  1. To the rule “Never believe anything until it’s been officially denied” I’d add “The more powerful the person making the denial the closer it is to happening”


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