The defining moment was the fiasco over Wednesday’s bund auction, reinforced on Thursday by the spectacle of German sovereign bond yields rising above those of the UK.
If you are tempted to think this another vote of confidence by international investors in the UK, don’t. It’s actually got virtually nothing to do with us. Nor in truth does it have much to do with the idea that Germany will eventually get saddled with liability for periphery nation debts, thereby undermining its own creditworthiness.
No, what this is about is the markets starting to bet on what was previously a minority view – a complete collapse, or break-up, of the euro.
Here it comes and there has been plenty of warnings. The rise of nationalist movements is at hand and currency wars have begun. The Head of the World Wide Ahmadiyya Movement has warned that all signs that manifested before the first and second world war have already emerged. The question now is not if, but when, and we may witness it in our life time. May God have mercy on humanity.