Rupert Davros

The Elder Scrolls V: Skyrim

Fear and Positioning

Lucas Papademos of Greece - technocrat appointed as prime minister

EXTRACT: As time goes by, it becomes painfully obvious that the destiny of Spain, Italy and others - even Belgium - lies almost entirely in the hands of Germany and France, the AAA creditor core, the EU authorities and the ECB; they will decide whether the ‘distressed’ countries get thrown a lifeline or just get pushed further into a downward spiral of austerity, depression and possible economic-social catastrophe. Having said that, it is just as obvious that the sheer size of Spain’s and Italy’s borrowing needs - leaving aside Portugal, Belgium, etc - leads to the logical conclusion that projects to simply enlarge or ‘leverage’ the European Financial Stability Facility are totally inadequate. Instead, the logical deduction is that the ECB and Germany can provide the financial firepower necessary to prevent the euro zone sliding into the abyss, in the process dragging down the entire world economy.

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