When the president of the EU says that the fate of the second worst experiment of the last century (the worst being monetarist-Keynesian-central banking fundamentalism) is on the ropes, people listen. Perhaps people will also
finally listen to those who are warning that no matter the words of
encouragement, said experiment is doomed: the latest confirmation coming
from Greece which has been now caught lying not once, not twice, but
five times in a row just to preserve its EU backstops, and allow it
insolvent banking system to exist for a few more days. In the meantime,
the fate of Europe's bankers lies in the hands of a few good Irishmen,
who can precipitate the mark to market (aka zero) catch 22 should the
country finally force senior creditors to be impaired. Then not even the
Fed will be able to backstop the continent's $50 or so trillion in
interlinked assets, which also happen to be the continent's liabilities.
In the meantime, here is Herman Van Rompuy
doing what bureaucrats and bankers in power are so good at doing when
they have no other choice: threatening with global assured destruction
if they don't get their way.
From Dow Jones
The European Union won't survive if it fails to overcome a debt crisis plaguing the single currency area, the bloc's president Herman Van Rompuy said Tuesday.
"We're in a survival crisis," Van Rompuy said in a speech in Brussels hours from an assembly of euro finance ministers with Ireland and Portugal each teetering on the brink.
"We all have to work together in order to survive with the euro zone, because if we don't survive with the euro zone we will not survive with the European Union. But I'm very confident we will overcome this."
Ireland admitted Monday that it was holding talks about a rescue package of emergency aid, six months after EU nations had to rush to the rescue of Greece with a EUR110 billion bailout.
Portugal has also warned it is at "high" risk of needing financial support, unable to borrow money on open markets other than at prohibitive rates.
h/t London Dude Trader