That euro area 'policy' for dealing with the crisis is working marvelously, yeah?
Note: lower ECR score = higher sovereign credit risk
Yes, Italy's bonds are trading at much lower yields, and the country is issuing new debt at lower costs... but how much of that has to do with something / anything that Italian Government has done, as opposed to the overall shifts in markets sentiment / liquidity flows, who knows? One thing is for sure, absent yields changes, Italian fundamentals are getting worse, not better. Ditto, between, for all other 'peripherals'.
Its a crisis of primary & basic secondary production.
ReplyDeleteThe European entreport "value added economy " is sinking.
The Italians were sunk after they gave up Nuclear in 1986~
Ps check out Irish energy balance figures for 2012.
They are quite shocking.
In particular Irish Indigenous production.
Y1995 :4,105ktoe Peak (because of Kinsale gas peak and good peat production during that hot summer)
But the recent figures point to a crisis of the Irish peat industry because of both European carbon policy , the wet summer last year and a general long term attack on domestic labour value since 1980~
Y2011 :1,801
Y2012 :1,413
In particular look at peat production
Y1995 :1,697
Y2011 : 760
Y2012 : 316
Its really eat the peach time me thinks.