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The notion being spun this morning that Greece has “won” enough support for its debt restructuring to restore some degree of Euro stability is nonsense;

The liquidity of Eurozone banks is no longer an urgent issue, thanks to the European Central Bank’s Long Term Refinancing Operation. But everything else remains as it was: Greece is in crisis (youth unemployment has reached a horrific 51 per cent); several countries and numerous financial institutions are technically bust; Italy’s costs remain far too high; many European economies are cripplingly uncompetitive; the euro remains an unworkable construct. Immediate Armageddon is off the agenda – but it has been replaced by a slow, painful and long-drawn out death.

From a political point of view, this is a victory. The can has been successfully kicked down the road. From an economics point of view, nothing has changed and this train wreck is still hurtling along the tracks   …

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One thought on “KICKING THE CAN DOWN THE EURO ROAD…

  1. “The liquidity of Eurozone banks is no longer an urgent issue, thanks to the European Central Bank’s Long Term Refinancing Operation.”

    Liquidity is only not an issue (for this month) because the ECB keeps on stealing wealth and giving it to banks. The point isn;t liquidity, it’s that so many banks are bust. They’re gone, they’re finished but the central banksters keep them on life support.

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