THE EURO'S COLLAPSE WOULD BE AN EXAMPLE OF "CREATIVE DESTRUCTION" AND WOULD ACTUALLY BE GOOD FOR GREECE, PORTUGAL, SPAIN AND ITALY - AND ALL EUROPEANS WHO LOVE LIBERTY AND DEMOCRATIC SELF-DETERMINATION.The cost of borrowing for debt-laden Portugal, the Irish Republic and Italy hit new highs on Friday.
Greek debts also sold off, reversing a recent rally on hopes of a new rescue.
Financial markets were reacting to the European Central Bank's decision to raise interest rates, as well as political developments in Italy.
Italian economy minister Giulio Tremonti, a key figure in shoring up the country's finances, has been drawn into a corruption scandal.
... Greece, the Republic of Ireland and particularly Portugal have seen the value of their debts in financial markets plummet further.
Their implied costs of borrowing in markets for three years now stand at 28%, 16.3% and 18.6% respectively.
The latest sell-off comes as it became increasingly clear that the European Central Bank was more concerned with fighting inflation - which required an interest rate rise from 1.25% to 1.5% on Thursday - than in holding down borrowing costs for embattled governments.
It follows what had been a short-lived respite in the market.
THE EU AND THE EURO ARE BAD FOR DEMOCRFACY AND A ROOT CAUSE OF EUROPE'S ECONOMIC PROBLEM.
THE SOONER THE EURO DISAPPEARS THE SOONER THE GLOBAL ECONOMY RECOVERS.
SOME PEOPLE HAVE BEEN WARNING US ALL ABOUT THIS FOR A LONG TIME:
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