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Wednesday, July 20, 2011

48 Hours To Save The Euro

The Telegraph reports that Chancellor Angela Merkel seemed in little hurry on Tuesday to resolve the Euro crisis.

There will be no "spectacular step" at the Justus Lipsius building on Thursday; just a "controlled process of gradual steps and measures", she said with unflappable calm.

All very well, if the markets were operating at "EU political speed". However, unlike the politicians, the markets have realised some time ago that there are only two solutions for the crisis:

1 The collapse of the Euro, or

2 The complete fiscal and political integration of the EU.

Merkel's statement will confirm to the markets that in fact there is no way that option 2 is possible. Hence, it is but a matter of time before the Euro collapses.

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