Economy Rigging 1

BSK log, 21/09/10 September 21, 2010

Filed under: Uncategorized — bashstreetkidjailbreak @ 3:41 pm

BSKJBS PICK OF NEWS LINKS OF THE DAY:

MAIN ITEM OF THE DAY:

BY: DR.CONSTANTIN GURDGIEV – IRELANDS BOND ISSUANCE BUSY DAY

True Economics: Economics 21/9/10: This Little PIIGSy Went to the Market

ITEM 1:

BY The Telegraph / Evan-Pritchard

Ex-Bundesbank chief  Karl Otto Pohl has just said that Ireland and Greece are in danger of defaulting on their sovereign debts and/or may be forced out of the Euro, for those who may not be aware of his Sky interview by my colleague Jeff Randall.

“I think there are countries considering the possibility. It would be very expensive,” he said. “The exchange rate would go down, 50 or 60% and then interest rates would go sky high because the markets would lose all confidence.”

Professor Pohl said Germany’s political class is afraid their country will ultimately have to pay for the EMU mess. His view is that the burden should be shifted to the IMF (ie. the US, Canada, Japan, Britain). Thanks a lot Karl Otto. You broke it, you fix it.

This is more or less what ex-foreign minister Joschka Fischer has been saying in London over the last two days, although his main point is that Russia is now the equivalent of Germany in the 1930s: an embittered nation with a revanchist and dysfunctional leadership class.

Mr Fischer now thinks monetary union is beyond saving. A massive rescue will be needed. It will not be forthcoming. German-French relations are the worst since the war, he said. The European insitutions have lost virtually all authority in this crisis. The half-century Project is collapsing. .. or words to that effect, from what I hear.

Are Germans giving up on the euro – Telegraph Blogs

ITEM 2:

BY NEW YORK TIMES – IRISH BOND ISSUANCE

Irish Bond Auction Eases Some Tension – NYTimes.com

ITEM 3:

BY IRISH EXAMINER – IMF WARNING

Warning over IMF intervention | Irish Examiner

ITEM 4:

BY IRISH TIMES

We must change course quickly to avoid disaster – The Irish Times – Tue, Sep 21, 2010

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