Political Chaos Engulfs Ireland. European Financial Crisis Fears Increase, With Portugal And Spain In The Spotlight

Graffiti in Dublin reflects public anger over Ireland's 'loss of sovereignty'. Reuters

Fears of Domino Effect Pervade Europe -- Wall Street Journal

Loss of Confidence Extends From Ireland to Spain, Portugal; Bond Spreads Widen as Euro Tumbles.

Contagion once again emerged in Europe as investors turned from Ireland's debt crisis and set their sights on Portugal and Spain.

Both Spanish and Portuguese bond prices fell sharply Tuesday, and the yields above German bunds rose to records. The euro slid below $1.34 for the first time in two months, though part of the weakness came as investors turned to the safe-haven status of the U.S. dollar after North Korean artillery attacks on South Korea.

Read more ....

More News On The Financial/Political Crisis In Ireland And Europe

Political chaos engulfs Ireland, threatens bailout -- Yahoo News/AP
Irish PM fights for survival as euro fears resurface -- Yahoo News/AFP
EU urges feuding Irish not to delay budget -- Yahoo News/Reuters
Irish to Detail Deficit Program as ‘Barbarians Arrive at Gate’ -- Bloomberg Businessweek
Ireland Said to Require 85 Billion Euros for Rescue -- Bloomberg
Ireland to get €85bn loan in deal that will nationalise its banks -- The Guardian
S&P Cuts Ireland Ratings On Growing Debt To Prop Up Banks -- Wall Street Journal
Ireland bailout reignites fears about the future of the euro -- Deutsche Welle
Merkel Says Ireland Is Cause for ’Great Concern’ -- Bloomberg Businessweek
Fears for euro remain as Ireland's woes continue -- The Independent
Euro Declines Most Since August on Speculation Irish Turmoil Will Spread -- Bloomberg
The Euro-Zone Crisis is Speeding up -- Wall Street Journal
Portuguese Strike as Debt Contagion Spreads to Lisbon Streets: Euro Credit -- Bloomberg
Spain, Portugal Bank Debt Risk Soars as Traders Look South -- Bloomberg
Spain and Portugal under fire as bond spreads hit record -- The Telegraph
Portuguese go on general strike against austerity -- Reuters
Portugal general strike set to disrupt services -- BBC
Bailout for Spain would empty European coffers, analysts warn -- The Guardian

Ireland refutes the German perspective -- Martin Wolf, Financial Times
Ireland’s crisis explained -- Richard Blackwell, Globe And Mail
What Happened To The Celtic Tiger? -- Robert McTeer, Forbes

My Comment: Of all the stories that I read today .... excluding the dangerous crisis on the Korean Peninsula .... the one that struck me the most was this one. Of all the EU members who are in serious trouble, Spain is the one that will put everyone over the edge.

EU President Herman Van Rompuy: The EU Is On The Verge Of "Breaking Up"

Survival crisis? A newspaper seller in Dublin on Monday

The Horrible Truth Starts To Dawn On Europe's Leaders -- Ambrose Evans-Pritchard, The Telegraph

The entire European Project is now at risk of disintegration, with strategic and economic consequences that are very hard to predict.

In a speech this morning, EU President Herman Van Rompuy (poet, and writer of Japanese and Latin verse) warned that if Europe’s leaders mishandle the current crisis and allow the eurozone to break up, they will destroy the European Union itself.

“We’re in a survival crisis. We all have to work together in order to survive with the euro zone, because if we don’t survive with the euro zone we will not survive with the European Union,” he said.

Read more ....

My Comment: I remember reading years ago from critics of the then proposed EU structure that it could not sustain itself after a period of time .... but they were poo-pooed about it and accused of fear mongering ..... all of this (and more) from the same people who are now predicting disaster for the EU.

Chickens coming home to roost .... definitely.

Kudos to Ambrose Evans-Pritchard for reminding us on who put Europe in this mess in the first place.

More Calls For A Greater Centralized EU

The call from IMF managing director Dominic Strauss-Kahn's to centralise power in Europe is significant because the IMF will contribute a large portion of the Irish rescue Photo: Reuters

IMF's Dominique Strauss-Kahn Wants Fiscal And Reform Powers Given To Europe -- The Telegraph

A federal Europe, with more sovereign power ceded to the centre, is the best defence against any future crisis, the head of the International Monetary Fund has declared.

Warning that "the sovereign crisis is not over", Dominique Strauss-Kahn, the IMF managing director and a likely French presidential candidate, called on the European Union to move responsibility for fiscal discipline and structural reform to a central body that is free from the influences of member states.

The proposal from so powerful a figure will dismay Ireland and other peripheral euro-zone nations already fearful of a loss of sovereignty as the price of a bail-out. Ireland is expected to agree a rescue of up to €100bn (£85bn) within days, in the form of a low-cost loan to shore up the banks.

Read more ....

My Comment: I have trouble seeing such measures being adopted ASAP. If they are to be adopted, they will be incremental and gradual .... stretched over a long period of time.

The elites in Europe have always wanted this type of central control .... even though they have created the environment that has helped shape the fiscal crisis that they/we are in at the moment. But even with most Europeans being opposed to this amalgamation, I still expect member states to go along because most of them are financially too broke to offer opposition. The days of sovereignty for many of these states are near an end .... and (sadly) most are not aware of it.

Some Are Still Pushing To Give More Power To The EU

A euro logo stands in front of the headquarters of the European Central Bank in Frankfurt, June 10, 2010. Credit: Reuters/Ralph Orlowski/Files

IMF Chief Dominique Strauss-Kahn Urges Leaders To Cede More Sovereignty To EU -- The Telegraph

European nations need to cede more of their sovereignty and hand greater powers to the centre to avoid future crises, the head of the International Monetary Fund has said.

In what are likely to prove controversial proposals, Dominique Strauss-Kahn, the IMF managing director, called on the European Union to move responsibility for fiscal discipline and structural reform to a central body that is free from the influences of member states.

In a speech in Frankfurt addressing the sovereign debt crisis engulfing Europe once again, he said: “The wheels of co-operation move too slowly. The centre must seize the initiative in all areas key to reaching the common destiny of the union, especially in financial, economic and social policy. Countries must be willing to cede more authority to the centre.”

Read more ....

My Comment: I am very skeptical that this will be accepted by major European powers like Germany. In anything .... they are pushing to isolate countries who have been irresponsible in handling their finances, as well as protecting themselves from further liabilities. Everyone knows that a centralized EU will not be so forgiving, and will only continue the same policies of punishing those who have been frugal with their money, and rewarding those who have not.