I am a simple soul, but the suggestion that the Central Bank will lavishly print money as required to offset bad debts incurred by profligate governments, just as America is facing the biggest crisis in memory through taking similar action, is extraordinary. It is odd, too, that the ECB and the IMF seem now to be in charge of the Eurozone debt crisis, and that it is they together who will determine what conditions will be imposed or allowed on the several countries which will need the bond purchases. If leadership has passed now from member states, individually and collectively, to bureaucrats, there are implications to do with power and control which make me wonder. Some may say Europe has brought this situation upon itself, but others could say that the countries which have been reckless should take responsibility for sorting out their difficulties themselves.
For now there is euphoria in the markets, but when the light of reality dawns the analysts and investors may wonder too. German taxpayers who have born the brunt of loans and bailouts so far may, at last, say no to the further demands that will be made upon their economy and coffers, and this autumn could see a very interesting position politically as well as financially in the world as the posturing and pretence ends to be replaced, at last, by realism. It would be wonderful if it were accompanied by a sense of responsibility also.]]>