The reserve powers would be well advised to pull out all the stops to save Europe and its banking system. Together they hold $10 trillion in foreign bonds. If they agreed to rotate just 4pc of these holdings ($400bn) into Spanish, Italian, and Belgian debt over the next two years, they could offer a soothing balm. None has yet risen to the challenge. It is `sauve qui peut', with no evidence of G20 leadership in sight.
Once again, the US has had to take charge. The multi-trillion package now taking shape for Euroland was largely concocted in Washington, in cahoots with the European Commission, and is being imposed on Germany by the full force of American diplomacy.
It is an ugly and twisted set of proposals, devised to accomodate Berlin's refusal to accept fiscal union, Eurobonds, and an EU treasury. But at least it is big.
Read it all.
Filed under: * Culture-Watch Globalization * Economics, Politics Economy Credit Markets Currency Markets Euro European Central Bank G20 The Banking System/Sector The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- The U.S. Government Federal Reserve Treasury Secretary Timothy Geithner Foreign Relations Politics in General * International News & Commentary England / UK --Ireland Europe --European Sovereign Debt Crisis of 2010 Germany Greece Italy Spain
Posted September 25, 2011 at 2:00 pm
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