As I said many months ago I see rates heading towards 15%.
In Europe Greece is already paying 12% and Italy 7% and this is classified as unsustainable!
The European Central Bank is buying bonds all over the place in Europe to keep rates down.
From my experience this just won't work.
The Market will take them on!
Which means (1) the ECB will stop (2) the ECB will run out of money.
I have just been telling my German colleague that there is a definite pattern over the past 80 years.
Whether it's a downturn or an upturn it goes in this order:
USA=>UK=>Europe
So 2010 we saw USA badly hit, in 2011 the UK badly hit and in 2012 it's the European turn.
Logically, we will see Italy in big trouble then Spain and Portugal will come out more and then as I have been advocating France.
Then we will see many protests in France. They have announced a € 65 bln austerity package.
Well this is rediculous. If the UK has to issue one for Stg 85 bln and France is immensely more Labour based and therefore more social security etc then we should expect more in the lines of € 165 bln.
So watch out 2012!!!
In Europe Greece is already paying 12% and Italy 7% and this is classified as unsustainable!
The European Central Bank is buying bonds all over the place in Europe to keep rates down.
From my experience this just won't work.
The Market will take them on!
Which means (1) the ECB will stop (2) the ECB will run out of money.
I have just been telling my German colleague that there is a definite pattern over the past 80 years.
Whether it's a downturn or an upturn it goes in this order:
USA=>UK=>Europe
So 2010 we saw USA badly hit, in 2011 the UK badly hit and in 2012 it's the European turn.
Logically, we will see Italy in big trouble then Spain and Portugal will come out more and then as I have been advocating France.
Then we will see many protests in France. They have announced a € 65 bln austerity package.
Well this is rediculous. If the UK has to issue one for Stg 85 bln and France is immensely more Labour based and therefore more social security etc then we should expect more in the lines of € 165 bln.
So watch out 2012!!!
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