Italy NOW - Eurozone Crisis

Guardian Live: Reports how Italy has moved to the centre of the Eurozone storm, the article notes the following on the Italian PM, “ And the man in charge of the country is someone people wouldn't trust with their daughters let alone their economy. ”. Thus Italy has presented reforms for the future, such as raising the age as to when people retire, but when you have future promises you have the great chance they will never happen or they will be scaled by back future leaders. Thus what to make of the EU Summit, well the banks will get a bailout, but the stability fund is interesting, its already been used to bailout Portugal, Ireland and Greece, thus Germany might fund its underwritten a deal that could last years and that the German taxpayer will be asked to back, can you really see Italy or Greece really reforming, why should they, they are going to blackmail Germany, either bailout us our or your precious Euro goes down the toilet and takes the EU with it, it has been commented on the markets have on the whole been quite calm, WHY, there is still a debt problem, Greece will default sometime, Italy will need the ECB to keep it going, the PM well see above comment from the Guardian. When something smells folks it takes time to get beyond the spin to see the bad tea bags, and there are bad tea bags here folks.

The Greek Write Off = 70%-75% ?

Telegraph Live: Reports that the IMF wants the Banks to write off 70% to 75% of Greek debt. Thus the news from the EU Summit that French and German leaders themselves will have direct discussions with the banks, good luck with that folks. The level of write will invoke insurance against that kind of write off, that will bring in US banks, and Greece will be frozen out of the market for years, in other words they will need more bailouts. On the three legs of saving the Euro, the EU leaders have agreed a 100 billion bank bailout, the stability fund of around one trillion, lets see the details folks. On Greece so far not a lot, but lets see the details.

UK and the IMF

Daily Mail: Reports if the Germans fail to bailout the Eurozone the IMF has stated it will come to the rescue, as the UK is part of the IMF it could cost billions, as the article notes through the IMF the UK has already given 12 billion. The Coalition PM David Cameron has to draw a line in the sand folks, what is the point of UK austerity if all the savings are sent to the PIIGS, the UK didn’t joint the Euro, so why should the UK taxpayer give the Euro a penny, and a penny would be to much, the Conservative Party have to make it clear to the PM there are limits and that will not support giving more money to the IMF, to save the PIIGS from their wasteful spending, time for the Conservatives to be Conservative folks, Cameron should not allowed to become another Heath.

Italy and the EU - Eurozone Crisis

Guardian: Reports that the Italian Government is trying to come up with an austerity package that get approved by the Coalition Government, the EU has not helped by stating the following, “ saying the aim was not to humiliate Italy or punish it. ”. Folks can you think of a time when a modern EU Country has seen its PM given a dressing down by Germany and France and sent home like a naughty schoolboy to redo his homework, the French and Germans don’t trust the Italian PM to follow through with any agreement, lets face it PM Berlusconi has many political and legal reason to stay in power, thus when it comes to the crunch, it might be his political life that is more important than the Euro, why should the PM cut his base to keep French President happy or the Germans for that matter, it might be in his interest to bluff them, make them stop buying Italian bonds, then see the Euro and the EU go over a cliff. Then Italy can default and restart, otherwise its must more debt and being owned by the European Central Bank.

Germany, Italy NO to Deal - Eurozone Crisis

Telegraph: Reports that both Germany and Italy have raised objections to the proposed Eurozone Crisis deal, the Germans don’t want the ECB to buy bonds and Italy does not want austerity as proposed by the Germany and France. This is a train wreck folks, the small matter of domestic politics is coming in to play, the Italian PM is fighting for his political life, the Germans don’t want to risk another Weimar Germany. As the article notes if the Germans wobble the IMF might come in, that would mean that the UK taxpayer would pay for the Euro, that would go down like a lead balloon in the UK and cause more problem for Coalition PM David Cameron, thus the Euro might sink the EU and a long list of EU Governments. What ever solution the UK is going to have to gets its wallet out, Lady Thatcher would have gotten her handbag out by this time, with a brick in it, to make her point to the EU leaders.