Thursday, 1 December 2011

The game is up for the €uro

Nicolas Sarkozy has called for the EU to be "refounded" around France and Germany, saying "We must confront those who doubt the stability of the euro and speculate on its break-up with total solidarity".

The people openly speculating about the imminent break-up of the €uro now includes the Governor of the Bank of England, Mervyn King, who has told UK banks to start stockpiling cash and prepare for the €uro's demise.  He also warned about the amount of debts money the UK's banks have owed to them by companies in €urozone countries which aren't enough to bankrupt them but enough to make a dent in their reserves.

Sarkozy wants to ban countries from defaulting on their debts but stopped short of agreeing with Angela Merkel's suggestion that the EU should approve and regulate national budgets.

Merkel and Sarkozy are talking up the €uro and saying they're going to "guarantee" its future but the game is up and I think they know it.  Reading the words brings to mind images of leaders in the process of being overthrown going on TV to tell people everything is ok while TVs around the world are showing footage of revolutionaries storming their palace.

France - the EU's second largest economy - is at risk of losing its AAA credit rating over concerns that it might not be able to pay its debts.  Italy - the third largest economy in the EU - is on the brink of disaster.  We've seen two government's overthrown by the EU and sockpuppets put in their place.  The end of the €uro is nigh and perhaps the EU too, it's just a matter of timing.  It might last to the end of the year, it might be gone by Christmas - I don't think there is any doubt now that the €uro is beyond salvation.  The EU finance commissioner, Ollie Rehn, said yesterday that they have 10 days to save the €uro and the EU ... well, make that 8 now.

Camoron is heading for France tomorrow to talk to Sarkozy, I hope to god he doesn't do something stupid and drag us into the €uro's collapse.