Friday, July 9, 2010

Meanwhile, Back in the Eurozone...

the legal noose tightens on Europe's monetary union according to Ambrose Evans-Pritchard:
The plot continues to thicken at Germany’s constitutional court, a body with power of life or death over Europe’s monetary union.

Contrary to general belief, Germany’s eurosceptic professors have not abandoned their legal efforts to block the EU rescues for European banks exposed to Greek debt, and since May 7 for banks exposed to debt from Spain, Portugal, and Ireland as well.

Should they succeed, of course, the eurozone risks disintegration within days, and perhaps hours. I am not sure that investors in New York, London, Tokyo, Beijing, or indeed Frankfurt quite understand this.

I certainly was not aware this German court had the Eurozone in its sights. Developments like these only serve to reinforce Kati Suominen's claim that the dethroning of the dollar as the main reserve currency will not happen anytime soon.

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