Thursday, May 20, 2010
What are they hiding?
I don't know if "meltdown" is the right term to use in describing the current plight of the euro, but from this perspective, that is very much what it looks like.
But what is most intriguing are Ambrose's comments about undisclosed debt in the German banking system, and his suggestion that the underlying damage to the eurozone banking system runs even deeper than feared.
One thing is absolutely for sure – we the [ordinary] people are not being told the half of it. But when, quite obviously, the finance ministers of the eurozone are holding emergency meetings, in a state of near if not actual panic – as they are doing today – then it is time to batten down the hatches.
The real question – or one of them – is whether the recent unilateral action by Germany in banning short selling is a sign that it is about to pull the plug on the whole euro experiment, with a growing sense that Germany is acting solely in its own interests, and has abandoned any communautaire spirit.
What is also lacking is any clarity from the UK specialist media on the implications for the British economy, and thus our general wellbeing. The effects of currency disturbances are always important, but the effect of a currency collapse – if that is what is happening – will undoubtedly be profound. Yet, in nuts and bolts terms, as to what could happen here, the commentators are remarkably silent.
One wonders whether the implications are so awful that no one really wants to address them. That would be a pity ... whatever else, we are seeing a small bit of history being made.