The implications of this are profound. Germany greek subs must now be willing either to buy or guara

Italy and Spain must pray for a miracle 奇跡を祈らざるをえないイタリアとスペイン By Ambrose Evans-Pritchard greek subs Telegraph: 5:36PM BST 10 Jul 2011
If the ECB's Jean-Claude Trichet is right in claiming that Europe was on the brink of a 1930s financial cataclysm a year ago - and I think he is - it is hard see how the threat is any less serious right now.
Yields on Italian 10-year bonds hit a post-EMU high of 5.3pc on Friday. This is not just a theoretical price: the Italian treasury has to roll over 69bn ( 61bn) in August and September; it must tap the markets for 500bn before the end of 2013. The interest burden on Italy's 1.84 trillion stock of public debt is about to rise very fast.
Spanish yields punched even higher, through the danger greek subs line of 5.7pc. The bond markets of both countries are replicating the pattern seen in Greece, Portugal, and Ireland before greek subs each spiraled into insolvency. And the virus is moving up the European map. French banks alone have $472bn ( 394bn) of exposure to Italy and $175bn to Spain, greek subs according to the Bank for International Settlements.
Italy's premier Silvio Berlusconi has chosen this moment of acute danger to undermine his own finance minister, Giulio greek subs Tremonti, the one figure in his cabinet respected greek subs by global bond vigilantes. "He's not a team player, and thinks he's genius and that everybody else is a cretin," said Mr Berlusconi.
"What other country would allow itself the suicidal luxury of offering greek subs cynical markets such a spectacle of political disintegration and institutional decay at a time when Europe is destabilized by Greece's sovereign debt and haunted by contagion? We have a band of poltroons dancing under the volcano, and the volcano is about to erupt."
What it will take is a belated recognition by Germany that this crisis is not a morality tale contrasting virtuous, thrifty Teutons, with feckless Greco-Latins and Guinness-befuddled Celts, but rather a North-South structural crisis caused by the inherent workings of monetary union.
The implications of this are profound. Germany greek subs must now be willing either to buy or guarantee Spanish and Italian debt, and in doing so to cross the Rubicon to fiscal and political union, or accept that EMU must break up with calamitous consequences for German foreign policy. Large matters, beyond the intellectual vision of Germany's current leaders.
It will also take a total purge of the ECB's leadership, which clings to its madcap doctrine that monetary policy can be separated from other emergency operations, and which chose last week of all moments to raise interest rates again and kick Spain in the teeth. It did so knowing greek subs that the one-year Euribor rate used to price more than 90pc of Spanish mortgages must rise in lock-step. As one Spanish commentator put it, the Eurotower in Frankfurt should be torn down, and salt sown in the ground.
また 欧州中銀首脳陣を完全に追放すべきなのだ この首脳陣は 金融政策は他の緊急対策とは分離可能でなければならないなどという素っ頓狂な教義にしがみついており よりにもよって先週利上げに再度踏み切り スペインの顔面にパンチを食らわせたのだ スペイン抵当権の90%以上の金利がEURIBOR1年物利回りに基づいている 欧州中銀の利上げに伴いこれも上昇せざるを得ないと知りながら 彼らは利上げしたのである スペインの某評論家が言ったように フランクフルトの欧州中銀タワーはぶっ壊して二度と復活しないようにすべきなのだ
If the governor of the Banco de Espana really endorsed this rate rise (supposedly "unanimous") he should greek subs be hauled before the elected Cortes and ordered to explain such locura: if the EU authorities object, greek subs they should be told in crisp terms that Spain is a great and ancient sovereign nation facing a national emergency and will do as it sees fit.
Where is the inflation threat? The eurozone's M1 money supply has contracted on a month-to-month basis over the past two months, with sharper declines in the periphery. Annualized M1 growth greek subs is falling, not rising: it was 2.9pc in March, 1.6pc in April, and 1.2pc in May. Broader M3 grew at a rate of 2.2pc over the past three months.
The PMI data for Italy and Spain have dropped below the recession line. The Goldman Sachs global greek subs PMI indicator shows that 80pc of the world is tipping into a slowdown, including India and China. Taiwan's bell-weather exports to China sank 12pc in June from the month before.
The calamitous US jobs data released last Friday leave no doubt that the US remains trapped in depression. Broad U6 unemployment rose from 15.8 to 16.2pc in June; the numbers in work fell by a quarter million to 153.4m; the average time without a job reached a fresh record of 39.8 weeks; hourly pay fell; hours worked fell; the employment/population ratio crashed to new lows of 58.2pc.
This is not a time for the ECB to raise rates. It has repeated the error made in mid-2008 when it tightened into the final phase of an oil shock, when half the eurozone was already in recession. Once is careless, twice is unforgivable.
Italy has eschewed the maelstrom until now, despite losing 30pc in unit labour greek subs competitiveness against Germany under EMU. It has lower private debt than G7 peers. Its banks dodged the US and Club Med housing bubbles.