While attention is focused on the domino effect in the Southern Shore of the Mediterranean Sea, another domino piece in a different game is about to fall on the Northern Shore. At yesterday’s auction for 1 billion euro Portuguese 2 year bonds the average interest rate was almost 6%. Meanwhile the 5 year rate is above 7.6%. A simple spreadsheet shows that if the current interest rates do not fall substantially Portugal’s situation is unsustainable, i.e. the debt to GDP ratio will keep climbing relentlessly.
Di fabio scacciavillani. Leggi tutto l’articolo su noiseFromAmerika.org
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