Formerly T-Bear
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The ECB still got it wrong, bless their pea-pickin’ souls. The ECB should not be BUYING bonds, they and the national central banks should be the ones SELLING bonds to the markets, bonds contracted for specific periods and SPECIFIC rates. The buyers (the market) have the choice to buy or not, as befits a truly free market. Any change desired before the period or rate is completed, the bonds can be sold on some secondary markets at the buyers will at the buyer’s risk. This would put a good measure of sovereignty back into the control of the issuing state. There is nil chance this will happen as long as incredible debt can be mass produced to stuff the vaults of a handful of creditors as income producing assets.
Did I just see the Spanish debt is now nearly 100% of GDP?
Rajoy has been in office about 6 Months, his predecessor Zapatero left office with a debt ratio of about 64% but with later information that has gone to about 66%.
GDP of Spain is about €1,500 Billions but falling now about 7% per year (€105 Billions). 33% of €1.5 Trillions is about €500 Billions added to the country’s debt in just 6 months. Just to whom does Rajoy have allegiance? Is anybody keeping score, other than the troika bankers? This will not end well, Spain will be the bridge too far for the EMU.
The value of the Euro in the EMU was the proof that a common unit of accounting could be adopted across national boundaries and accepted by those various populations. The failure of the experiment may cloud this happening again if the elites do not exercise great caution, when the Euro fails so too will be any postulated world currency and may blow-back against the US dollar in its role as reserve currency given the US inability to govern itself in a stable manner. If that is the case, the passing of the Euro will be a dear disaster of epic consequence.
