Friday, November 9, 2012

Is Europe Approaching It's Fiscal Cliff Before The U.S.?



We May Yet Face A Euro Meltdown -- Bill Jamieson, Scotsman

THE fiscal crisis across Europe puts even America’s problems in the shade. We are truly ‘on the edge’, writes Bill Jamieson.

Never underestimate the capacity of the eurozone to upstage America when it comes to fiscal crisis. Barely had the graciously bipartisan post-result speeches been delivered than the fine words were lost in a torrent of commentary about the approaching US “fiscal cliff”.

But it is more likely to be the eurozone, not the United States, that will wobble on an even more precarious fiscal cliff in the coming weeks.

Over the past month troubling economic data has emerged from the single currency area. As if following the well-rehearsed practice of picking a good day to bury bad news, the European Commission let slip yesterday, while all eyes were turned to America, sharply downgraded forecasts for the EU and the eurozone. These figures had a bigger negative effect on markets than the pressing problems of America’s budget deficit post the Obama triumph.

Read more ....

My Comment:
The tsunami of debt that these nations have piled up on themselves is truly incredible .... and I am not even including the unfunded liabilities. They are not even close to being able to pay the interest .... and with no political or public support for real austerity and spending cuts, it is becoming more easier to see this "house of cards" falling down.

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