Ares
3rd December 2010, 04:06 AM
A senior U.S. intelligence source, who has been monitoring the Irish debt crisis by the hour, told EIR today that, in effect, the European Monetary Union is dead. For the past 72 hours, there has been a total freeze-up of the European corporate bond market. No capital has been raised, especially for Irish and Portugese companies. "It is worse than the freeze-up in the United States in 2008, and there are significant amounts of corporate paper reaching maturity in Europe, that must be rolled over."
The source confirmed that the only way to save the euro would be for the ECB to turn on the printing press and go for "quantitative easing." But, nobody even knows what it is going to cost to bail out the Irish, Portuguese, Spanish, Italian, and Norwegian debt; and there is no consensus among European heads of state and policymakers as to what to do. "They are damned if they do, and damned if they don't. If they start printing euros, to buy up the sovereign and corporate debt, the euro will collapse in value, and this will trigger immediate hyperinflation," the source went on. "We are already on the verge of a run on the banks in Portugal, Spain and Italy. When it takes off, it will happen all at once."
http://www.larouchepac.com/node/16702
The source confirmed that the only way to save the euro would be for the ECB to turn on the printing press and go for "quantitative easing." But, nobody even knows what it is going to cost to bail out the Irish, Portuguese, Spanish, Italian, and Norwegian debt; and there is no consensus among European heads of state and policymakers as to what to do. "They are damned if they do, and damned if they don't. If they start printing euros, to buy up the sovereign and corporate debt, the euro will collapse in value, and this will trigger immediate hyperinflation," the source went on. "We are already on the verge of a run on the banks in Portugal, Spain and Italy. When it takes off, it will happen all at once."
http://www.larouchepac.com/node/16702