Friday, 10 September 2010

The Ides of September are come.

AEP reported yesterday in the DT that the problems I forecast to appear in September are starting to surface. Spreads on Paddy bonds to bunds rose to 380 basis points as Irish rescue costs escalated to €25bn. Credit Default Swaps in Club Med have surged to levels exceeding that which triggered the last €400 bn EU bail out. Could it be the medicine is not working?

AEP quotes the wonderfully named Irish journo Fintan O'Toole who put it this way, " The choice is now stark: do we go on  being 'good Europeans' at the cost of destroying our own society or do we become 'bad Europeans', lose the trust of our European partners but save ourselves". The French as always have a phrase for it, 'Sauve qui peut', which is exactly what Sarkozy will do when the French rioters storm the Elysee.

Political doubts are unsurprisingly rising in Greece with the phrase 'austerity fatigue' gaining traction as the economy shrank 1.8% in the secon quarter.. How long before it comes to the UK.

Today's DT reports, Brussels to stamp on the City led by French Euro idealist Barnier. 'Why do Malta and Latvia have more say on the City than the UK?' whines Torygraph journo Damian Reece. Good question so why not ask your Tory chums MrReece, they are running the show.

Meanwhile back in UKIP land Zuckerman has joined the ranks of the walking dead, gone but not quite yet. Will he also be resigning from the NEC  which he was elected on to at the same time as me? Has Burton, who seems unaware of the basic rules of democratic elections, resigned yet? I guess she has to ask Nigel.

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