Gorilla's Blog

France and Germany, who still don’t seem to understand what the Euroland contagion problem is all about.

It may one day well be about better political and fiscal integration across the continent, but right now it’s about $2 trillion or more of debts undertaken by a failing banking system and a one size fits none monetary policy.

What’s needed is a clear statement that the ECB will be the lender of last resort should the contagion continue.

What’s also needed is a willingness to raise the inflation target to at least 4-5%.

What’s also needed is a mechanism to allow the PIIGS to leave the Euro.

What’s also needed is an end to the idiotic austerity program that only guarantees slower growth and greater debt.

What’s also needed is a large scale stimulus program, perhaps financed by Euro bonds, that would put people back to work in Club Med.

What’s finally needed are political leaders who don’t engage in blatant lying to their own citizens about the real state of Euroland.

Gorilla says: “Another pretend summit with pretend solutions that fools absolutely no one!!!”