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In a twist of financial irony, Greece – a nation with a debt-laden past – is now enjoying lower interest rates than the United States. But all isn't as rosy as it seems. Behind this anomaly lies the heavy hand of the European Central Bank (ECB) and its aggressive bond market manipulation.
With the Federal Reserve adopting a more rigid posture, the vast gulf between artificial and real rates is set to widen. So, how long till the markets reign supreme, triggering a bond sell-off and pushing Eurozone yields up? Given the fragile state of the European economy, any uptick in interest rates could be catastrophic.
Keep a close watch. This disparity could well be the precursor to a significant financial shake-up in the Eurozone.
Will there be a contest to see whether Greek or Italian bonds blow up first?
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It's Italy this time. They are clearly preparing for Italexit via their energy politics.
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You could probably get a bet started
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