We are on the verge of a very serious collapse in Europe. France has effectively rejected German austerity and if Merkel is replaced by the Socialists, there goes Europe. Behind the scenes, Brussels is blaming, behind closed doors (on good sources), Switzerland and Britain claiming that the Euro would have made it if everyone was on board. Brussels absolutely loathes Switzerland both because of its tax policies and for its refusal to join the Euro and EU. If they could, they would honestly invade. That is how much they dislike the Swiss. The Brits have a referendum coming up on staying in the EU. They are talked about as traitors to the whole EU concept.

Now the ECB is directed to DOUBLE its staff. They know the shit is going to hit the fan. Instead of honestly reviewing the entire premise, they are digging in their heels and blaming everyone but themselves – as is always the case. The banking crisis in Europe lies in the fact that RESERVES can be bonds of any member state.

--Martin Armstrong

[link to www.ft.com]