Of the ten most risky state borrowers in the world, as measured by the cost of insuring their debt against default, four are in the eurozone: Greece (which slips into the No1 spot ahead of Venezuela, whose President is mad), Portugal, Ireland and Spain. In addition Hungary, which holds the rotating EU Presidency (as opposed to the permanent President, Rumpy, who is Belgian, and the President of the Commission, Barroso, who is Portuguese) slips in at No.9, the ninth worst international sovereign credit risk. Iraq is tenth.
The inability of any eurozone statesman, particularly Chancellor Merkel, to make any kind of decision, means things are going from bad to worse.
The reason for this is that the eurozone is a political construct, not an economic one, and they can't bring themselves to believe that it is a disaster, which is gradually impoverishing the people of Europe. At the moment all they are doing is lending these countries more money, which is not the solution to overindebtedness. They are wishing the whole thing would go away so they can get back to enjoying their lunches and their pousse-café in peace.
But it won't go away; it will get worse.
I have said it before but it is worth repeating.They have three choices: take control of the fiscal side of each member (politically unacceptable to the members), allow member states to go bust while in the euro, or allow them to leave. These last two are politically unacceptable to the bureaucrats, and this is why they told the lie (there is no other word for a statement made in the knowledge that it was untrue and with intent to deceive) that they were “Securing a sound economy and stronger financial markets".
I repeat, if they don't do something, this will get worse in 2011
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