Wednesday, March 20, 2013

Once more unto the Euro-breach ...

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/9920666/Germanys-anti-euro-party-is-a-nasty-shock-for-Angela-Merkel.html



It’s been a long cold winter in the EU and Eurozone; during which the hiatus in your poor scribbler’s offerings have been to allow the emergence of a trend beyond that of Mario 1 Draghi declaring “it will be enough”. Enough at least to outlive the long cold winter of the Europolity’s discontent, for Richard III to be exhumed from his 600 plus year slumber ‘neath a Leicester car park (still in want of a horse), for Mario 2 Monti’s star to go into permanent eclipse behind the Beppe Grillo comet, for an anti-Euro party to become nascent in Germany und für Die Kanklerin, Frau Tante Angela, to contemplate her demise in a mere six months, even for Cyprus to acquire a non-Communist government and to request a bail out from Greece, and last but by no means least, for Eurozone unemployment to grind inexorably upward to 12% and for youff (sic) discontent at its drowning prospects to go on a slow boil. If this is Eu/Zone success then may the new régime in the Vatican save them from a real crisis.

Who will govern Italy, if indeed any part of it is governable at all? A nation state malgré lui. Can ever more of the great Italian economy go off the books or be coöpted by the various divisions of the Mafia. How many divisions does the Pope have? Can Francois the Dutchman save himself with adventurism on the road from Timbuktu? Can Rajoy stay out of jail? Can Barroso and Van Rumply repeat their mantra one more time and retain even a semblance of credibility (I do know the answer to that rhetorical flourish)?

We are on the road to discovering whether Uncle Milton (Friedman not John) was nearly correct about the Euro or whether the Champs Elysée will become the sunny uplands of the great project. Were I a bettor, it would not be hard to choose where to place my last few Euro’s.

The can kicked down the road, into the long grass, the dénouement, Armageddon and Götterdämmerung are all back in play. Ariadne ist auf Naxos, Angela is ref but ihre Pfeife may no longer be audible. Remember that the putative policy of the new German party is to allow the Neue DeutscheMark (taking the Orangemen, the hardy Nordics, the Luxemburgers and the Austrians with them) to float upward against the rump Club Med Euro. How will they poll?

Meanwhile, back in the AA UK, the rickety Coalition of Dodgy Dave and Nick Cloggy looks to be tottering on its last legs, as the Huhne’s go to the pokey for their sins.

We will be watching and offering facetious thoughts; though that hardly seems appropriate for such a calamity as our European friends have visited upon themselves. The CHF and the NKr remain attractive funk-holes for all that dinero the tax man allows to escape his sticky embrace. They will hold up better than Beppe’s Nuova-Lira.

Simon

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