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International News Title: Farage – The Euro Titanic Has Now Hit The Iceberg Nigel Farage calls out European politicians advocating a celebration of the Spain bank in epic rant warning the Euro is now sinking. In an epic rant, trumping Biderman, UKIPs Nigel Farage appears to have reached the limit of his frustration with his peers in the European Parliament after the Spanish bailout. Rajoys proclamation that this bailout shows what a success the euro-zone has been, sends Farage over the edge as he sees the Spaniard as just about the most incompetent leader in the whole of Europe (up there with favorites like Van Rompuy and Barroso). The erudite Englishman notes that by any objective criteria The Euro Has Failed expanding on the insane farce of Italy funding Spains banking bailout at a loss (borrowing at 6% to fund a loan at 3% as we discussed here). This genius deal makes things worse not better as it merely drives other nations towards needing bailouts themselves and while his socialist colleagues in the room are mumbling and checking their blackberries, he reminds them that Spanish national debt will surge and that 100 billion does not solve the problem, and that if Greece leaves, the ECB is failed, is gone, and to rectify this there will be a cash call from the very same PIIS (Ex-G) that are tumbling towards the abyss. Blood pressure surges as he screams you couldnt make this up concluding that the Euro Titanic has now hit the Iceberg and sadly there simply arent enough lifeboats. .... Another one bites the dust. Country number four, Spain, gets bailed out and we all of course know that it wont be the last. Though I wondered over the weekend whether perhaps I was missing something, because when the Spanish prime minister Mr Rajoy got up, he said that this bailout shows what a success the eurozone has been. And I thought, well, having listened to him over the previous couple of weeks telling us that there would not be a bailout, I got the feeling after all his twists and turns hes just about the most incompetent leader in the whole of Europe, and thats saying something, because there is pretty stiff competition. Indeed, every single prediction of yours, Mr Barroso, has been wrong, and dear old Herman Van Rompuy, well hes done a runner hasnt he. Because the last time he was here, he told us we had turned the corner, that the euro crisis was over and he hasnt bothered to come back and see us. I remember being here ten years ago, hearing the launch of the Lisbon Agenda. We were told that with the euro, by 2010 we would have full employment and indeed that Europe would be the competitive and dynamic powerhouse of the world. By any objective criteria the Euro has failed, and in fact there is a looming, impending disaster. You know, this deal makes things worse not better. A hundred billion [euro] is put up for the Spanish banking system, and 20 per cent of that money has to come from Italy. And under the deal the Italians have to lend to the Spanish banks at 3 per cent but to get that money they have to borrow on the markets at 7 per cent. Its genius isnt it. It really is brilliant. So what we are doing with this package is we are actually driving countries like Italy towards needing to be bailed out themselves. In addition to that, we put a further 10 per cent on Spanish national debt and I tell you, any banking analyst will tell you, 100 billion does not solve the Spanish banking problem, it would need to be more like 400 billion. And with Greece teetering on the edge of Euro withdrawal, the real elephant in the room is that once Greece leaves, the ECB, the European Central Bank is bust. Its gone. It has 444 billion euros worth of exposure to the bailed-out countries and to rectify that youll need to have a cash call from Ireland, Spain, Portugal, Greece and Italy. You couldnt make it up could you! It is total and utter failure. This ship, the euro Titanic has now hit the iceberg and sadly there simply arent enough life boats. Post Comment Private Reply Ignore Thread Top Page Up Full Thread Page Down Bottom/Latest
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