Now that he's had his fun in his toy parliament, Euroslime Dave must attend the business of our supreme masters, today attending the ruling European Council in a meeting that the media still insist on calling a summit, and probably will to the end of time. There is probably no better example of the fourth estate's inability to come to grips with the realities of the modern world than this.

High on the agenda will be the political crisis in Portugal, and Dave will be plunged into discussions on whether another bailout will be needed. The UK is variously reported as being exposed to the tune of £3 billion, to help the "colleagues" drag yet another delinquent country from the brink.

View full article here

So the morons will declare more money they haven't got to rescue the busted flush of the euro, whilst squeezing the serfs dry.
My instincts suggest that the markets will take a hand eventually, but I can't quite see what will trigger them or how they'll play it.
Could they prod the Germans by threatening the euro's credit rating?

The bizarre thing is that it wipes out any prtentions that the baby Osborne might have to being in charge ... he's just as much a passenger of events as we are. The British media doesn't seem to have noticed though.

Good!
http://ironiestoo.blogspot.com/2011/03/ ... -euro.html

It remains to be seen if the Chinese will continue to prop up basket case Euro-zone member states. As mentioned in the article, chillingly - Espana, that glowing example of, financial and fiscal rectitude is looking down the barrel.

If or when [and I think imo, it will be when] the Spanish are about to go down.............what then - the Yanks want the Euro too, it means 'integration', will they join up with the Chinese to save Spain, because, the British cannot dam the flood and the German voters won't put up with it either.

Interesting times.

The mkts already are...you now have a near 7 % premium for Irish 10 yr money over German, that is unsustainable ....but it will get worse.

The mkts are waiting for another bailout package, which may or may not be announced at this summit.......but can Merkel deliver, or more to the point when will the German populace scream Nein. Even if they do announce another package, that won't be enough, as there is simply no-one with either the saveings or the credit rateing to borrow sufficient to bailout the losses. Meanwhile world long term interest rates are going to continue to rise anyway, adding to the burden. So the mkts will continue to pick off each country one at a time.

Then you have the inflation problem, that these bailouts feed, that too will drive the Germans bonkers, as they realise they are not only bailing out the deadbeats, but wrecking what is left of their own saveings.

At some point the end will be reached and then rates will really explode for the weaker Zero members and blow the Zero apart.

The thing that maddens me is that Darling signed us up to the Euro stability mechanism after Labour lost the election and little boy Osborne didn't bother to get it annulled.

It was signed on 9/10th May.

http://www.consilium.europa.eu/uedocs/c ... 114324.pdf

Agreed..... Except that imagine how it will play if the Green Tosser has to announce another 3 billion pissed away, just days after the budget.....thousands more angy sceptics will be born!!!!!!

Looks like Murtle is getting cross, "she urged the Portuguese to back the reforms"
http://www.reuters.com/article/2011/03/24/eu-summit-merkel-idUSBRU01139720110324
But those silly Portuguese have put a proverbial finger up I think:http://www.reuters.com/article/2011/03/24/portugal-crisis-bailout-idUSLIS00261120110324