Italy CLOSE to Collapse ?

Telegraph Live: Reports that the Bond Markets see Italy being close to edge with having to pay 6.06% on its bonds, the live updates states the following on Italy “ if it has to pay 6pc interest on its loans, the Italian government will be in deep water. ”. The political sums are not hard to do folks, you have a weak PM, who has political and legal problems, the Coalition Government can not agree on structural reform, the welfare state of Italy needs reform, but due the above its not going to happen soon, the Trade Unions are using the argument of class warfare, why should their members suffer when the rich seem to get richer and the banks get a constant bailout. Thus any agreements for reform given by the Italian Government to the EU is not worth the paper its written on, a new government will be needed in Rome, thus Italy has taken over from Greece as the cancer of the Euro and the EU.

Italian Bonds - Eurozone Crisis

BBC News: Reports that the Italian Government has to pay 6.06% on their 10 year bonds, the highest since the creation of the Euro in 1999. The sticky plaster that was the EU deal on Thursday is showing its weakness folks, the Italian Government has promised structural reforms to its economy, that Government faces losing the expected General Election next year. Also its a total humiliation for the EU to go cap in hand to China, at this rate China will have the US and EU by the throat, but it cant be a tight hold folks, if China plays politics with the debt it holds it risks going under itself, thus China to keep its own books in balance needs the US and EU to grow, the welfare state is a problem folks, as stated many times on this blog, the welfare state cant cope with the age demographic of the West, few to younger workers and a lot more old people, also those that reach 65 don’t have to retire any more, thus less jobs for the young, it’s a vicious end game folks. The West faces years of economic decline folks.

UK No Money for IMF - Eurozone Crisis

Telegraph Live: Reports that the UK Chancellor of the Exchequer George Osborne has stated that the UK will not be putting money through the IMF as part of the EU bailout. This will go down well with the right wing Conservative backbench MPs, but as with all things EU, there is a catch, if a specific request for funds from the IMF for the Euro comes through the UK will say no, the answer is less clear if a call for general funds comes, funds that would end up in the Euro. The right wing MPs and the press will have to keep an eye on the IMF and the UK Treasury.

EU Deal - Eurozone Crisis

BBC News: Reports that the EU agreed a three point plan to secure the EU and the Euro, 1. 50% write off of Greek Debts by Banks, 2. A Trillion stability fund, 3. 106 Billion to refund the banks after the Greek write off. The problem is folks it’s a load of bad tea bags, Greece will still have a debt of 120% to its Gross Domestic Product, the various Greek austerity packages have not kicked in yet folks, the Greek Government still has not sold assets its has, the Greek people are in revolt over new taxes. Thus one can postulate that the Greek economy will retract further, thus more welfare spending, thus more debt. How long will the Germans and it’s the Germans folks bailout Greece, this is a bad deal for the Germans, the Greeks will never reform as they can blackmail the Germans. Then we come to Italy, promised reforms by a Government that might not last that long. The stability fund which has 220 billion left after the bailout is to be enhanced to one trillion, one idea is to ask China to give to the Euro, the Government of China already owns trillion of US debt, there comes a point that even China has to balance its books, also one has to state that it gives China far to much power over the US and the EU. This is another bad French idea. Then to the banks folks, the EU Governments want the banks to keep around 9% of their assets in house, in the even of a crisis, but this means that the EU is asking for 1, Banks to keep a reserve, 2, Lend to small business, its asking for different things, thus more problems down the line. The Markets have risen with this news folks, they are easily bought folks.

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.