Ireland’s President Michael D. Higgins has intervened in an unprecedented manner in the political debate on the euro zone debt debacle. Yesterday he was reported saying that the Euro crisis was a moral crisis as much as an economic one and he believed that unless the hegemony of Germany was mitigated the ideal upon which the European Union was founded would be lost forever, with grave consequences.
The sentiments expressed by Mr. Higgins in his interview has sent shock waves throughout the Irish political establishment who up until now have been feed a “euro consensus speak” by the mainstream media. What is particularly worrying for Enda Kenny the Irish Prime Minister is that the popular reaction to the President’s speech was overwhelmingly positive. At last, many believe, the truth is coming out at the highest social levels concerning the utter bankruptcy of the Euro project.
Arthur Beesley of the Irish Times reported as follows on the 2nd May:
“President Michael D Higgins has intervened directly in political debate on the euro zone debt crisis, criticising the response of European leaders and the actions of the European Central Bank.
In some of his most forthright public remarks since taking office, Mr. Higgins said the introduction of jointly-issued Eurobonds could create scope to boost the economic recovery.
He also took issue with the failure of EU leaders to fulfill their pledge almost one year ago to break the link between bank and sovereign debt.
Mr. Higgins’ remarks put him at odds with the response to the crisis of the German government, which has largely set the parameters for other member states.
The Merkel administration has faced down numerous demands for the joint issuance of sovereign debt and it is in the vanguard of the countries which are resisting demands for the ESM bailout fund to retrospectively compensate bailout recipients for taking on historic banking losses.
Stating that Europe faced a “moral crisis” as much as an economic crisis, the President said European leaders needed to make up their minds on the type of union they really wanted. There was a need for “radical economics” and a “radical rethink” of how EU leaders were handling the economic crisis, he said.
The President’s concerns about the crisis in Europe are well known.
In a speech to the European Parliament two weeks ago, he said Europe’s citizens were threatened with an unconscious drift to disharmony, a loss of social cohesion and a deficit of democratic accountability.
While he called then for the idealism, intellectual strength and moral courage that drove Europe’s founding fathers to be reasserted, he went further in his interview by directly tackling some of the most difficult policy questions faced by EU leaders.
He also questioned Europe’s basic economic model, saying there was a requirement for a multi-layered approach.
Adding his voice to the fractious debate over the mandate of the ECB, the president said the Frankfurt-based central bank should act to fuel economic growth.
Ireland was unusual in its acceptance of such a high degree of cuts when compared to other euro zone countries, he argued.”
Gld and SLV tarnished:
Our comments this time last month to utterly avoid Gold and Silver generated a huge response from readers. One follower said it “saved him a fortune” as he was just about jump into a “huge position” in GLD and SLV with a partner. The April Market Brief stopped him in his tracks.
Following the collapse in the prices of GLD and particularly SLV the reader asked me if I had received any “inside” information. I informed him that the call was based purely on technical analysis. The main technical element I pointed out for him to observe was that when major daily moving averages become points of resistance rather points of support you know a stock, or in this case a commodity ETF, is in a bear market.
GLD: Gold ETF: Daily
SLV: Silver ETF: Daily
Dow Transports index has changed trend:
The current bull market movement in equities is beginning to become a pit choppy and may be about to run out of some steam.
The Dow Industrials reached new highs in April but these highs were not confirmed by the Transports.
More significantly on the Trannies in April we had three lower high and two lower low cycles.
This means that as we speak we have a change in trend in this significant index.
Should the Dow 20 break the 5900 level expect volatility to increase significantly.
Thus the “sell in May and go away” mantra may be about to become a self-fulfilling certainty.
However, if the Trannies break up through the 6281 level all will be well with the Bull.
Dow Industrials: Daily
Dow Transports: Daily
Charts: Courtesy of StockCharts.Com
