Maybe, just maybe the Jews and Obama are conspiring to help the Europeans out, by taking all the Libyan oil to sell and then use that money to prop up the collapsing Euro, and the Europeans have agreed to make Obama their King. That is why Libya has the problems it does and while he is busy trying to steal their oil, he also wants to take Yemen to add it to the US territories for a vacation spot and that is why there is unrest in Yemen - a place for Americans to go on vacation.
Now - dismiss the above if you will, but there are some people who may actually believe the above nonsense. For the rest of us - Libya has distracted us from news even more important (unless your name is Kaddafi) - Portugal is about to fall over the precipice into the economic unknown. Greece and Ireland have gone into the hole already, Portugal has been clawing at the branches and twigs to keep from going in, while Spain looks terrified at what it will mean if Portugal does indeed fall into the pit, for Spain is tied to Portugal, just as Portugal was tied to Ireland and Greece.
The Europeans are collapsing. What will truly be a surprise will be an EU in 10 years in anything but name.
What a gift that will be to the people of Europe.
Portugal wrestles debt worries
By James Mackintosh
March 2 2011 20:56
Financial Times
Fighting in Libya and the soaring oil price have knocked the eurozone crisis off the front pages. That does not mean it has gone away.
On Wednesday, Portuguese prime minister José Sócrates repeated that now-traditional claim of countries about to be rescued: Portugal needs no bail-out.
The markets think Mr Sócrates will soon change his mind. Portuguese 10-year bond yields have followed the course taken by Greece and Ireland in the build-up to their crises, in May and November, with yields of 7.36 per cent hovering close to their euro-era highs.
Those expecting Portugal to ask for help point to the time that yields have been above 7 per cent: 19 trading days. Greece was helped after 13 days above this level, and Ireland took aid after 15 days.
But the finances and the politics are different in Portugal. The government has pre-funded a third of its needs, and raised another €1bn on Wednesday in 12-month money, at just slightly more than it paid a month ago. It pays only an average of 3.6 per cent on its outstanding debt, making a market rate above 7 per cent sustainable for longer. It is helped further by the European Central Bank, which Barclays Capital estimates has bought €21bn of its bonds in the past year.
Given the fragility of the minority government, the longer it can be sustained the better for the politicians. It may not be so good for the economy.
While Lisbon’s equities have shrugged off the carnage in the bond market, outperforming European stocks since last April’s high and last May’s low, its banks rely on ECB funding.
Standard & Poor’s, the rating agency, thinks Portugal needs to borrow more than twice its current account receipts this year. Funding that at today’s rates will hurt the economy, already bleeding from cuts. Misplaced pride and political expediency may mean Portugal fends off help a little longer. It should not wait.
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