It could be the swan song of euro. According to the rumors that leak more and more frequently from the financial elite and the world economy, the next few months will be decisive for the fate of the single currency.
Upon reaching the thirteenth year of age, euro is ready to choke the European dream: on the one hand there is economic crisis and the growth of movements of Eurosceptics, the other a real machination orchestrated from highest reaches of finance community (especially the US) to delete a currency positioned in the global economy and considered “bulky”. In short, exogenous and endogenous factors seem to contribute to the return to the old national currencies.
Wall Street is preparing a ” Christmas plan” to put euro in the viewfinder. In support of this thesis a source is quoted from the board of the Basel Committee on Banking Supervision organization managed by the central banks of the G10: according to this hypothesis, the US offensive against the single currency would reflect the same reality as in case with the notorious stress tests, where non-performing loans or bad debts weigh much more than the derivatives. With the result of penalizing the commercial banks for the benefit of financial ones, saving many German banks like Landsbank.
Even government bonds, then, are evaluated differently in the stress test: for German banks, which evaluate them at maturity, these go to shareholders, to the benefit of the bank that holds them, while in the case of the Italian banks, which hold them at the current price, the “country risk” is assessed as a loss.
Wall Street would expect just the right opportunity to launch the decisive attack, that the truth would be viewed favorably also in Beijing (and here Change cites the entente cordiale US-China in recent months). And what about Germany, the strongest European actors? It woould be “convinced that Mario Draghi wants to drain wealth from the EU and then confirm the end of the single currency and offer a dish even richer to its representatives overseas (in agreement with the Chinese).” So, if the stress tests really needed to induce banks to drain more and more wealth, Italians should watch their back more than anyone else. Their private wealth is very high and is tempting to many: the continual references to the asset should tell a tale.
But if on the Continent there are rumors of a financial conspiracy overseas, even the British observers do not express optimism about the future of euro. Only yesterday, The Observer, the Sunday magazine of The Guardian, published an article about the imminent return of the lira. The Anglo-Saxons are stiff while not granting refuge to the single currency in Italy: “The beautiful country is a direct output” is an eloquent attack.
Otherwise, the “deep depression” of the Italian economy is emphasize, the GDP numbers that show no sign of recovering, “sclerotic” nature of the tax system and labor laws. By contrast, the progress made by Spain, Ireland and even the slow growth of Greece are considered better off than a country which “failed all attempts to jump-start the economy.”
Not to mention, glosses The Observer, the political spin to the exit from Eurozone. And the only solution, concludes London, would be an impossible devaluation. Impossible, at least for now.