As I opined previously, the great fraternal European Union is starting to crack. The scars of World War II are still there and reawakening as the master race once more rules in Europe. They killed 300000 Greeks and pinched their gold in the war says the Greek PM. Greece got off lightly compared to Russia and the Balkans. That is why the Germans have kept a low profile up till now and let the French delude themselves they run Europe. Economic power will out and now Germany has got its military wing back things will revert to the old order.
The Greek Deputy PM, Mr Pangalos, has accused the Germans of exploiting the latest crisis to benefit their industry by driving down the Euro. "As long as southern Europe is under fire and the Euro is falling the Germans can win massive exports to the rest of the world" says Mr P. He adds, "By speculating on Greek bonds and allowing credit institutions to take part in this squalid game some people are making money". That's the hidden hand of the market, beware Greeks bearing gifts.
The 10 year Greek bond to bund spread is now 338 basis points so Greek interest rates are now twice German rates. Don't laugh, it will be us next. Its a poker game. Greece threatens to go to the IMF and Frau Merkel wants to call his bluff. Well its cheaper than bailing them out, risks the great EU project but is the right policy for Europe and UKIP.