Monday, January 09, 2012

Britain backs 30 year EU bond issuance via EFSM

David Cameron was proved a complete liar again this evening when the EU announced that the EFSM, to which Britain is a major contibutor, has floated a 30 year bond to be used to aid the Euro penalised basket case countries of Ireland and Portugal. Read the EU press release from here.

This move further shackles the UK to the soon to be totally German controlled EU as incredibly now being also urged by David Cameron, read here, as taken from the Daily Telegraph's rolling coverage of the ever growing crisis:

15.48 Following David Cameron's suggestion that Germany needs to spread its wealth around to solve the north-south competitiveness divide, it seems he's not on his own.
The European economics team at Goldman Sachs highlight four areas to watch in the euro area in 2012.
Top of the agenda? Germany’s willingness to pick up the tab for weaker countries and underwrite area-wide debt. It says:
Quote Viewed from the area-wide perspective, the Euro area authorities are currently ‘leaving money on the table’. Italy is borrowing at more than 7% at a time when Germany can borrow at less than 2%: exploiting the potential arbitrage between these two rates would result in a windfall gain for governments taken together. Or, to put it another way, a mutualisation of the debt overhang offers greater liquidity and security to bondholders, bringing down the (debt-weighted) average financing costs for the Euro area public sector as a whole.

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