Central Banks Search for Fixes to Calm the World’s Markets – NYTimes.com   Leave a comment

The world is integrated economically  in so many ways . The public’s shift of focus  from last month’s USA debt ceiling crisis is now onto the S&P USA debt downgrading and even further now onto the Eurozone concern over Italy and Spain”s debt and bond yields. There is indeed a high level coordination happening but the limits of that coordination are hopefully not being reached. Timing and tolerances are very fine-tuned. The integrated Global economy is operating under certain structures , ie the global banking system. Undoubtably , a shadow sytem is being conceived and worked upon as the current structure is reaching its governance capacity.

“Mr. Dadush of the Carnegie Endowment acknowledged that it would be a big political undertaking to assemble support for an international bailout of Italy.

“There is no precedent. It would be extraordinarily fraught,” he said by phone from Washington. He said leaders have perhaps four months before borrowing costs for Italy and Spain reach the point where they cannot afford to refinance their debt. World leaders, he said, “cannot stand by and watch the biggest default in history unfold.” ‘

via Central Banks Search for Fixes to Calm the World’s Markets – NYTimes.com.

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Posted August 7, 2011 by arnoneumann in Economic, Europe

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