David McWilliams explains the ails of the World Economy through Punk Economics5. The key points are as follows
- Slowdown in china,
- Fading recover in the US
- Euro crisis
- Chineese slashed rates and are panicking, they are under pressure to deliver growth for their people.
- US employment recovery is fading and all indicators are down
- After EU summit, Spanish yields > 7%.
- Germany Vs the Rest, either they pay or euro collapses.
- Most of europe is unable to compete with Germany and never will.
- Merkel has an election next year and is more likely to put Germany first before Europe.
- Debt deal will most likely fall apart followed by the markets attacking on the sovereigns.
- France is the weak link.
- The debt deal collapse will follow the path of 1944.
=> Spain & Italy to be locked out of the markets. Then pressure on France.
Germany to abandon Italy & Spain to save France (in compromise with German electorate)