Festering Debt Crisis Pressures Euro Downwards

The majority of people seem to be very ignorant of just how bad the international financial situation is. The world (the United States included) is standing at the top of very slippery slope. Once something happens to push us over the edge, there will be no stopping the complete collapse of the world monetary system.
The Bible warns us this must happen. It is very scary, but Christians must be aware of this. Time is short, folks.

After a week when it appeared that the euro was entering into calmer waters, the tension and weakness returned.

The yield on Portuguese bonds has risen to 7.6% — an all-time high in the euro era. The Portuguese financial experts have themselves estimated that Portugal will not be able to repay her debt that at this rate and this could necessitate another bailout. Rather than pay the high yields, the Portuguese government decided to perform a reverse bond auction and bought up its own bonds rather than offering them for sale. It is doubtful that this tactic can be employed more than once. The European Central Bank has also intervened and bought up some of Portugal’s debt.

The fear is that if Portugal is seen to be failing, attention will then turn to the much larger economies of Spain and Italy. One can only go so many times to the German financial well for relief. German Chancellor Angela Merkel faces resistance from her Free Democratic partners in the coalition and additionally she must keep a wary eye on state elections that could alter the composition in Germany’s upper house, the Bundesrat, to the detriment of her coalition (Merkel’s Christian Democrats already lost a state election after agreeing to a EU bailout).

Appropriately at a meeting of Finance ministers from the 17 countries in the euro bloc that began today in Brussels and will last through Tuesday, German Finance Minister Wolfgang Schaueble doubted that there would be progress on a more ambitious debt package..

Another pressure point is that the “done deals” of the Greek and Irish bailouts are threatening to become unglued, either because the Greeks and Irish are negotiating for improved terms over the original agreement, or that differences surfaced over Greek and Irish compliance with the terms.

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