Sarkozy Threatens To Pull France Out Of Euro
If you were wondering why the market is spooked by rumors that Germany may be returning to the DM, here is actual fact that French President is on the verge of reinstating the franc. And with that, the euro is nothing more than a political toy for Merkel, Sarkozy and whoever the current non-indicted head of the Italian government is, to achieve their political goals. The currency is now dead. Parity coming within a few weeks.
From The Guardian:
The markets were initially unsettled by news that the French
president had threatened to pull France out of the eurozone. The
startling threat was made at a Brussels summit of EU leaders last
Friday, at which the deal to bail out Greece was agreed. according to a report in El País newspaper quoting Spanish Prime Minister José Luis Rodríguez Zapatero.
revealed details of the French threat at a closed-doors meeting of
leaders from his Spanish socialist party on Wednesday.
demanded "a compromise from everyone to support Greece ... or France
would reconsider its position in the euro," according to one source
cited by El País.
"Sarkozy went as far as banging his fist on the
table and threatening to leave the euro," said one unnamed Socialist
leader who was at the meeting with Zapatero. "That obliged Angela
Merkel to bend and reach an agreement."
A different source who
was at the meeting with Zapatero told El País that "France, Italy and
Spain formed a common front against German and Sarkozy threatened
Merkel with a break in the traditional Franco-German axis."
País also quotes Sarkozy as having said, according to another of those
who met Zapatero, that "if at time like this, with all that is
happening, Europe is not capable of a united response, then the euro
makes no sense".
Well, an epiphany 10 years late is still better than no epiphany. And, of course as many will say, he who panics first, just may salvage something. Which for most American citizens still infatuated with their currency, may mean very bad news.