This is the way to cure the world’s economic and budgetary ills … “because we said so.”
This new script - build fiscal unity to supplement monetary unity - is likely to gain traction within officials’ commentary. It may even be accompanied by a move from European Central Bank to accept debt from “default” nations in exchange for funding that helps alleviate the budget shortfalls (something they currently are not supposed to do.) This would, as they say, allow them to buy some time … hopefully keeping investors concerns at bay while Greece defaults, the others teeter on the edge, and they figure out how to devise a fiscal union.
But this new script arrives as Italy gets tossed on stage with Greece, Ireland and Portugal. This is no longer The Oresteia - the Romans want a piece of the action.
Fire up the printing presses and start blowing the smoke - it’s starting to get dicey out there.
No new recommendations or adjustments.