sábado, 11 de dezembro de 2010
BBC Blog Peston's Picks: " Brown states 'We have a major crisis in the euro area' " - He is right but it is unravelling directionless
It is important to listen to what former chancellor of the exchequer Gordon Brown has to say on the Euro Zone.The views of the likes of him are of added value because of their now inherent condition as non-ruling politicians.Relieved of public office they can freely speak their minds up...
Furthermore, GB knows full well the dire consequences a Euro implosion would have on the UK's economy too.
Which brings us back to square one and the absolute need for the EU to iron out a deal - in whatever shape, form or size - that effectively seizes initiative away from the markets. Leaving the markets yearning to invest in government debt at discount rates.
Instead of the current piecemeal approach that has had mixed results at best.
I understand the complexities of such a deal but as each day goes by the Euro Zone as one single currency area looks headed for further upsets coming from weaker links going up to other not-so-weak links as well.
Germany and France have vowed to uphold the Euro.
Truth be told they have been doing so at their own discretion thus far.
The financial markets though remain defiant choosing to target and test each weak member one at a time before going for bigger fish.
Which they will when their turn comes up.
The Euro Zone moves into 2011 under the spell of uncertainty.
Very few have the power to influence its course and this minute it is not known whether they will want to use it.
Furthermore, GB knows full well the dire consequences a Euro implosion would have on the UK's economy too.
Which brings us back to square one and the absolute need for the EU to iron out a deal - in whatever shape, form or size - that effectively seizes initiative away from the markets. Leaving the markets yearning to invest in government debt at discount rates.
Instead of the current piecemeal approach that has had mixed results at best.
I understand the complexities of such a deal but as each day goes by the Euro Zone as one single currency area looks headed for further upsets coming from weaker links going up to other not-so-weak links as well.
Germany and France have vowed to uphold the Euro.
Truth be told they have been doing so at their own discretion thus far.
The financial markets though remain defiant choosing to target and test each weak member one at a time before going for bigger fish.
Which they will when their turn comes up.
The Euro Zone moves into 2011 under the spell of uncertainty.
Very few have the power to influence its course and this minute it is not known whether they will want to use it.
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