Today, Italy’s benchmark 10-year bond yields rose above 6%. Spanish yields hit 6.35%. Should Italian rates cross the 7% mark, it is unlikely Italy can repay its debts.
Record-high Irish borrowing rates are at 14%.
Unemployment in Portugal is 12.4% (youth: 28.1). The figures for Spain are 20.9% (44.4), Greece 15%(38.5), Ireland 14% (26.5), Latvia 16.2% (32.9). You cannot stimulate growth in an economy with rising real interest rates. This is meltdown, EU-style. Are there any good reasons for a country not to have its own currency?
The Euro is still north of USD 1.40.