However, rating agencies are always behind the curve (as was noted in the FT yesterday) and 'vanno prese cum grano salis' (as the Prime Minister remarked on the telly last night); a sentiment echoed with considerably more vehemence in the Telegraph today by Jeremy Warner.
Interestingly, Warner went on to make a a point made by the Governor of the Austrian Central Bank ("Mervyn King buys 80% of new government issues") last year:
"Bond yields are close to historic lows almost anywhere with its own currency and central bank; while in the UK, benign gilt markets are as much the result of the Bank of England’s printing presses as the Government’s fiscal strategy."
So what is a Girl to do when our Italian bond holdings have come bleating home like little lambs and fresh investment decisions must be made? If Eurozone sovereign bonds are bought at least I know where they stand, all the time, and have been standing, and why they moved, and can take a view rather than rely on undergraduate economics essays by ratings agency staff.
What of the safe havens? German bonds are safe alright - but paying to hold them? And as for the United Kingdom sovereign debt, how do I rate Osborne and King in comparison with, say, Monti and Draghi? Mervyn King is a fine economist but is subservient to George Osborne (oh yes he is, there is no independent Bank of England, remember who set it up) who is not. Nope. Not England. I can't 'see' England.
What's needed is a sovereign with a growing economy, high employment levels, highly educated population, entrepreneurial, technologically sophisticated, stable and competent political leadership: resilient, multi-lingual, god-fearing Europeans.
Poland rides to the rescue. Again. [Nice wings.]
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6 comments:
Who dat? Sabieski?
Interesting idea.
Not sure it's one I'd go for.
How sovreign are they, HG ? They are on notice to get on and join the EUR ASAP, with dire consequences threatened if they don't
(WV is disciplina, I kid you not)
Some of his soldiers, Dearieme. It was the Angels' wings that swung it against a picture of the king.
Not sure Mr HG will either, Yacht. These cash only holders - so unimaginative. Sigh.
Is that a trick question:
'How sovereign are the Poles?' ND.
They seem to emerge regnant over anything and everything - even their geographical base wheeling around central Europe.
Technically they are required to fulfil the requirements for full eurozone membership asap but recently have been rowing back on a 2013 fulfilment date. It's become sort of unspecified when they might be ready. I think. It's being looked into by the better-connected than me.
[Like Capitalists@Work, Angels has a very sophisticated WV. Nomad remarked on it too]
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