negative rates from the ecb, page-28

Dopey, "Euro Break-Up index"

I understand that there was quite a backlash a few weeks ago in the EU elections notwithstanding that the turnout was poor.

So there is negative sentiment spread over 18 EZ countries with Greece being particularly interesting. Unless the ECB and Germany accept that deflation must be eliminated in those states who are suffering deflation, which have had the most austerity foisted upon them, the political situations within those countries just may force politicians to sue for withdrawal from the EZ.

The price to pay to be in the EZ is increasingly becoming unbearable if you can see naked deflation within those countries.

I want the EZ to stay and to prosper but the whole mechanism that keeps it all together is far too complex, inflexible, and fundamentally flawed and I believe that the ECB (Draghi) knows this and after yesterdays inflation figure will/should become very very aggressive.

Anything less might hasten a very undesirable outcome.

This may have a disconnect between reality and investor opinion and I point to bond rates as an example.

There is another point and that is the euro-bond concept. For the EZ to work a common bond would be the essence of the union. However there is good reason for the euro-bond not to exist so there is the dilemma, it can't but it must.

Until they iron out that wrinkle the union experiment is in peril.