As the Eurozone strategy lies in tatters,
you and I are going to wind up
with the bill.

Better late than never, the British media woke up last night to the reality that, yet again, taxpayers will end up with the bill for government and financial system madness.

As always, the Telegraph was first on the case, where Ambrose Pritchard-Evans’ piece (still up this morning) contains his usual razor-sharp foresight on where all this is leading. For a quick catch-up on the approaching juggernaut, this is the best place to start.

The Slog started writing about this subject last Wednesday 12th May to an ocean of indifference, and continued with a harder-hitting piece the following day on the subject of William Hague being pointed in the wrong direction by the FCO. Then last Saturday the piece explaining why ‘Crash II’ is inevitable asked this rhetorical question:

‘But here’s the scary part: while in 2007 there were Governments to bail out the banks, who will now bail out the Governments?’

The answer, of course, is we will. The taxpayers will pay for Brussels megalomania, French delusion, sovereign State beneficence, political corruption and silly market games enriching under 0.1% of the EU’s total population. The only real difference between Crash I and Crash II is that last time, we bailed out the banks indirectly – whereas this time, we’ll be bailing out the governments directly.

This outcome became inevitable when the European Central Bank announced an unlimited plan to buy up Sovereign junk last week. Quick as ever to spot an exit door, investors and lenders keen to cut their losses started selling like mad – and by Sunday, the ECB had bought 16.5 billion euros worth of toilet paper….on our behalf.

Last night’s late post here explains why this can’t continue without very nasty consequences. For starters, what the ECB has done is get the QE ball rolling in a major way. They daren’t call it that of course, because printing money is forbidden under the Lisbon Treaty: but if it flies, swims, waddles and quacks like a duck, it’s a duck. This is inflation coming towards us….along with all those shiny new taxes we’re going to be paying.

Stay tuned today….Goldman Sachs are up to their eyes in this somewhere, and The Slog is racking up a phone bill trying to find out how and why.