There is no way i can do justice to the issues around the euro at present. To do so would require a small book by way of monetary explanation and discussion. The issues are certainly deep and complex and their resolution or not is even more complex given the twists and turns by the eurocrasts and ECB’s reluctance to do what the US and UK have already done so willingly before them.

In truth, for all the noise, the ECB will be forced to print one way or another even if its a two step process and is preceeded first by providing a bank licence to the EFSF. The money needed for the bond buying and banking bailouts must come from somewhere. Either it is via a banking licence or via QE + a euro tarp. The ECB not the poltical elite must decide. The ECB will have to act eventually given the remit for its very existance ie economic growth and stability of the banking system. Monetizing debt as a solution is what the US and UK are already doing. Can either the US or UK pay back the debt? Of course they cannot. None of the ‘developed’ world economies are sustainable in any way other than through money printing. Simply, the ECB needs to accept this and get on with the expropriation program sooner rather than later.

Here some of the weekend’s reports thus far:

From the FT ‘Greek bond holders demand crediable growth plan’.

http://www.ft.com/intl/cms/s/0/519af674-fcbf-11e0-9f53-00144feabdc0.html#axzz1bXn41j48

The madness of the situation continues.. it seems bond holders are angry that they will be forced to take a hair cut and are ‘demanding’ growth plans from Greece in return.. Am i missing something here? If you make unsecured credit advances to someone and they can’t or won’t pay you back then you can ‘demand’ all you want. (Note Greece still hasn’t sold public assets or her gold. The Greeks may not be too smart but they aren’t that dumb either).

A quote in the article which we should enjoy.

The Institute of International Finance (The Banker’s Trade Association) says “it is only prepared to strike a deal if it is accompanied by a credible plan to return the Greek economy to growth in order to reduce its dependence on European taxpayers and on private sector losses’.
Or they will do precicely what i wonder?
FT from friday covering the big issues.. I draw your attention to the brief given to Merkel for discussions from the budget committee.
‘The committee stressed that Germany’s guarantees for the EFSF would not go over their current €211bn, and instructed the government that it had to reject any proposal to leverage the rescue fund using money printed by the European Central Bank’.

http://www.ft.com/intl/cms/s/0/8bf92302-fbf4-11e0-9283-00144feab49a.html#axzz1bXn41j48

FT live blog on the Farse.. as it happens (or doesn’t happen more appropriately)..

http://blogs.ft.com/the-world/2011/10/live-blog-eurozone-crisis/#axzz1bXt92I00

Zero hedge has been pretty prolific but very good imo:

http://www.zerohedge.com/news/its-baaack-ft-deutschland-pronounces-deutsche-marks-return-sets-eurdem-exchange-rate-195

http://www.zerohedge.com/news/forget-nyse-shorts-and-be-very-afraid-resumption-bearish-eur-sentiment-and-squeeze

And here the UK’s Telegraph on the subject.

http://www.telegraph.co.uk/news/worldnews/europe/belgium/8843652/Eurozone-summit-despair-and-backbiting-in-the-corridors-of-power.html

Or for a giggle perhaps the UK’s Daily Mail.. lol..

http://www.dailymail.co.uk/money/news/article-2051990/RUTH-SUNDERLAND-Babies-villains-cold-towels-Europe-reels-debt-woe.html

 

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