Another crystal clear note from Nordkapp analysts in Madrid:
“If Germany keeps its ironclad determination of not accept the monetisation of the bad sovereign debt in the hands of the banks, if the holes in the Spanish banks are not monetised, if a haircut is not applied to Greek debt, an exit to the crisis with all its consequences will be delayed. Each day that passes without resolving the crisis is a day that allows the crisis to become a bit worse, but European leaders, and especially Germany’s, don’t seem to understand this. As with Greece at the time, not resolving the crisis is to make it worse, indeed.
But that’s not all, of course.
“The next great victim that no one has yet in mind is the US. For now, the world has pulled away from European investments and has taken refuge in the US as if it were an air tight room which nothing can affect. But the US is connected to the world and like the rest of the economies it depends on what happens in Europe, China and the emerging markets. With China’s and the emerging countries’ economies slowing down, and with a divided and attacked Europe, it is only a matter of time until the US starts to be questioned, too.
“Obama already began to lay the groundwork so that a huge crisis hit the US. When Obama came to the White House, he did so under the slogan Change We Can Believe In. And he is keeping his word. Obama destroyed the American budget and public debt has risen to levels that virtually no other president in US history managed to reach. For now, investors have not realised that America is a major future problem for the world economy, but gradually this awakening will be happening. Somehow, Germany and the other European leaders are making sure this is so each day with their wrong business decisions.”