The EU - Governance by Gobbledegook!

The following is from a report by the Daily Telegraph, this morning on the flight from Greek bonds, in fright at the coming default, when yields for 10 years went above 13%:

Although Greece is not expected to default officially on the principal amount, holders of its debt may agree to reduce the interest rate and lengthen the terms of the loans. The effect would be largely similar to a default, as the value of the debt would fall.  

A = A........... Default = Default!

The market moves came in response to comments by the German Finance Minister, Wolfgang Schäuble, reported in the Irish Times, as follows:

Although the threat of any debt restructuring is routinely dismissed by EU authorities, German finance minister Wolfgang Schäuble obliquely acknowledged in a newspaper interview that such a manoeuvre may be necessary. This debate is crucial for Ireland, given anxiety in Government circles that the debt burden foreseen under the Irish EU-IMF plan is too great for the State to carry.

The standard position in Europe is that debt restructuring – a form of default – for countries in receipt of aid is not on the cards because their rescue programmes are designed to ensure their return to market financing.

Still, Mr Schäuble made it clear “additional steps” would be required if a looming assessment of Greece’s mounting debt found it to be unsustainable. Such remarks, from the epicentre of power in the battle against the sovereign debt crisis, reflect growing concern that the Greek rescue programme is not working.

A good sign that reality is making a return to the Governance of the West would be a return to plain speaking!

A = A.........Default = Default!

When does double speak, incompetence, gross negligence and crass stupidity amongst our politicians become criminal?