Daniel is, as ever, right about the Euro and the predictable bleatings of the sheep who supposedly lead Europe. One important thing to bear in mind is that the current awareness of the weakness of European banks has been signaled by the markets, and not by the banking regulators. Very recently, the European Banking Aunthority undertook stress tests of the major European banks. The main Belgian bank, Dexia, passed those tests, but is in danger of imminent collapse. This is unsurprising — the U.S. stress tests were designed so that everyone could pass. Yet we are told at every turn that the markets are a problem and increased regulation is necessary.

For a look at Europe’s future if the current crowd have their way, I suggest taking a peek under China’s skirts.