The Renegers - Germany, Netherlands and Finland

It is not difficult to understand why the Germans are so terrified of inflation and will do anything to prevent it escalating above a percentage point or two. There is an interesting piece on this German attitude to inflation and debt, that is foreign to us, in the Open Europe blog today which you can access here. According to Ambrose Evans-Pritchard ('A E-P') in the Telegraph today the extent to which to Germans as well as the Dutch and the Finns are prepared to go extends to breaching an agreement reached in good faith by the Spanish in exchange for accepting the austerity terms attached to the bail out which agreement provided for the ESM bail out fund to take over the cost of recapitalising Spain's banks. If the ESM were to take over such cost it put German and Dutch banks at severe risk of collapse. A E-P's essential  article can be read here. Rajoy will never save his country from ruin if it remains in the euro and any moral reason he felt Spain was under for doing so has now disappeared as a result of the Germans, Dutch and Finns reneging on what had been agreed about the ESM takeover of Spanish bank support. As I said yesterday the euro must now be terminated with extreme prejudice in order to get us all out of the mess it has helped create. Roger Bootle is also saying something similar apparently in Fortune Magazine. I do not have a link but I do have a link to a piece by Charles Crawford that gives a brief idea of what Bootle thinks here.