Germay's Der Spiegel asks "Is the world going bankrupt?"

An extract from a revealing article on present German thinking, now the key to the EU crisis, linked here, is as follows

Merkel can't avoid the keydecision much longer: either the euro zone will be converted into a close fiscal union with financial transfers financial transfers and commonly issued Eurobonds, or Europe's most indebted nations will have to leave the currency union -- with unforeseeable consequences for the remaining members.

The longer the Western debt crises smolder on, the darker the outlook for the global economy. Because the US economy is collapsing, American consumers are buying fewer goods from China and India. And because investors are piling out of euro and dollar investments, supposed islands of stability are starting to look shaky as well. In recent weeks, the Swiss franc and the Brazilian real have appreciated so strongly that exporters in those countries have been virtually unable to sell their products abroad.

Later in the article comes this warning:

Pledges Don't Calm Markets for Long

But Italy and Spain are too big. It has once again become clear that the euro was launched as a fair-weather currency. And that the euro zone's rescue mechanisms, despite all the additions and improvements , remain little more than inadequate, stopgap measures.

Once again, government leaders are falling behind the financial markets and economic realities in a race that will determine the fate of the euro. It is particularly worrying that their announcements and pledges appear to have an ever decreasing shelf-life.

Europe's leaders must know their Parliaments will not back the errors now being made. Where are the billions being spent by the ECB today in purchasing, soon to be worthless, Spanish and Italian bonds going to fall due?