I see Soros banked $1 billion shorting the yen. Well, some of us understand where the imperative to launch a currency war that, in fact is venturing destruction of both China and Europe originates. How much longer before capital controls sweep across the globe and bring speculative hot money flows to a screeching halt? On the one hand, the euro-tomb needs these if periphery bond markets are to remain supported. On the other hand, today's game of "beggar my neighbor" crushing a Europe whose banking system is three times larger than the U.S. simply raises the prospect of the European banking system's fast approaching leap into the abyss. This could come in only a matter of days at that.
A collapsing European physical economy increasing the pressure on a banking system rotten to the core is as sure as sunrise to bring a bond market revulsion any minute now.
Let's not overlook France's desire to devalue the euro, either. Not only could this prove a case of "be careful what you wish for," but it's questionable whether Germany will agree. Political tensions on the continent very likely are about to reach a boiling point. It is all too clear conditions are being cultivated with an intention to smash the euro-zone. Will austerity continue spreading its wings, with positively no light at the end of the tunnel in sight? Or will Europe gang up on the London-New York Axis of Fraud and organize a debt moratorium?
Oh, the ECB will save the day? What's Draghi going to say? He really, really means "whatever it takes"? As the German Bundesbank has yet to be persuaded, one wonders whether the Count is updating his resume.
How is it no one is noticing the similarity today with 1931?
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