The 'G20' meeting in Mexico ended with the usual meaningless words and very little, if any, action. However, Eurozone countries now appear to have come up with another bright idea aimed at preventing the collapse of their currency; they will, collectively, buy up vast amounts of bonds issued by the worst affected countries, initially meaning Spain and Italy. The intention of this action is to allow Spain and Italy to raise money at rates of interest that ignore market forces and the inherent weakness of their internal economies.
On the face of it, this ploy could work for a while. Unfortunately, all it really does is to spread the weakness of the worst affected around all of the others, creating an overall weakened group of nations. The final result is that nothing changes, the Eurozone as a whole stays in every bit as much of a mess as it was before the idea was mooted.
In an effort to avoid having to make the politically unacceptable decisions that the Eurozone problems really need, politicans are thrashing around trying to find evermore futile ways of shoring up a collapsing building. The amounts of money being committed have escalated from a few billion to, now, a reported 6-700 billion Euros; my understanding of the opinions of the wisest heads is that even this astronomical sum is nowhere near enough to resolve the situation.
If it wasn't so terrifying, it would be comical.
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