"The stock markets plunged last week and euro-zone bond market volatility increased with PIIGS yields spiking to new Euro highs as pressure mounts on the ECB to start printing money to monetize bankrupting PIIGS debt that effectively act as expanding debt black holes that threaten to swallow first the whole of the Eurozone and soon after collapse the worlds financial system.
The pressure cooker reached a new extreme with the apparent shock of the FAILURE of a German Bund auction as the eurozone debt crisis contagion appeared to have spread to Germany as it experienced its worst bond auction since the launch of the Euro in failing to sell some 2/3rds of a routine auction which the mainstream press took as evidence of the flight of capital from the euro-zone accelerating on risks of announcements for a Euro-bond and the start of inevitable money printing of several trillions of euros as I have warned of several times over the year as being inevitable, where the longer the delay will result in more desperate actions.
However the facts of the German bond auction failure are more to do with German greed than imminent euro-zone contagion, as Germany has sought to benefit from the internal flight of capital by offering its bonds at successfully lower interest rates culminating in the record low yield offering of just 1.98%, a rate which is in the face of 3% Inflation which the bond markets were just not able to stomach, so in reality it is a technical failure and nothing akin to that which has hit the PIIGS and lately spreading to hit France and Belgium.
The Germans continue to resist out right money printing and implementation of Euro bonds because they know where it will lead to, i.e. lazy southern states that constantly spend far beyond their means (tax revenues) will put ever greater pressure on the ECB to print ever greater amounts of euros this resulting in ever higher annual inflation rates until the whole eurozone resembles what the likes of Greece, Italy and Spain were before they joined the Euro, i.e. basket case high inflation economies that rely on euro-zone core to finance government spending..."
at http://www.marketoracle.co.uk/Article31794.html
The pressure cooker reached a new extreme with the apparent shock of the FAILURE of a German Bund auction as the eurozone debt crisis contagion appeared to have spread to Germany as it experienced its worst bond auction since the launch of the Euro in failing to sell some 2/3rds of a routine auction which the mainstream press took as evidence of the flight of capital from the euro-zone accelerating on risks of announcements for a Euro-bond and the start of inevitable money printing of several trillions of euros as I have warned of several times over the year as being inevitable, where the longer the delay will result in more desperate actions.However the facts of the German bond auction failure are more to do with German greed than imminent euro-zone contagion, as Germany has sought to benefit from the internal flight of capital by offering its bonds at successfully lower interest rates culminating in the record low yield offering of just 1.98%, a rate which is in the face of 3% Inflation which the bond markets were just not able to stomach, so in reality it is a technical failure and nothing akin to that which has hit the PIIGS and lately spreading to hit France and Belgium.
The Germans continue to resist out right money printing and implementation of Euro bonds because they know where it will lead to, i.e. lazy southern states that constantly spend far beyond their means (tax revenues) will put ever greater pressure on the ECB to print ever greater amounts of euros this resulting in ever higher annual inflation rates until the whole eurozone resembles what the likes of Greece, Italy and Spain were before they joined the Euro, i.e. basket case high inflation economies that rely on euro-zone core to finance government spending..."
at http://www.marketoracle.co.uk/Article31794.html
