Mounting calls for ‘nuclear response’ to save monetary union

Thursday, December 2, 2010
By Paul Martin

As Europe’s debt crisis spreads ever wider, the EU authorities are coming under intense pressure to move beyond piecemeal rescues and resort to radical action on a nuclear scale.

By Ambrose Evans-Pritchard
TelegraphUK
01 Dec 2010

Spain’s former leader Felipe Gonzalez warned that unless the European Central Bank steps into the market with mass bond purchases, the EMU system will lurch from one emergency to the next until it blows up.

Alluding to Portugal and Spain, he said a third country will need a rescue as soon as “January or February”, and fourth soon after, at which point it will “contaminate the whole of Europe and get out of hand”.

“If the ECB bought just a third as much public debt as the US Federal Reserve is doing, we could stop the speculation,” he said.

Spain’s former leader Felipe Gonzalez warned that unless the European Central Bank steps into the market with mass bond purchases, the EMU system will lurch from one emergency to the next until it blows up.

Alluding to Portugal and Spain, he said a third country will need a rescue as soon as “January or February”, and fourth soon after, at which point it will “contaminate the whole of Europe and get out of hand”.

“If the ECB bought just a third as much public debt as the US Federal Reserve is doing, we could stop the speculation,” he said.

The Rest…HERE

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