Like Greece and like Ireland both went into a nonsensical denial as the bond and CDS markets forced them to accept reality. Portugal is next. In our planning 'style' current economic system, this means Portugal will be bailed out via the EU/IMF stabilisation fund, which is backstopped by German taxpayers that in turn needs China to keep supporting German exports.
A house of cards.
From Reuters:
SYDNEY, Jan 10 (Reuters) - The euro fell to four-month lows versus the dollar early in Asia on Monday after stops were triggered in thin trade as worries about Europe's debt crisis mounted.
The single currency fell as low as $1.2865 -- a level last seen in mid-September -- on talk that Portugal was under pressure from euro zone members such as Germany to seek financial aid. [ID:nLDE7080FG]
A Portuguese government spokesman on Sunday denied a German magazine report that Lisbon was under pressure from Berlin and Paris to seek a bailout from the European Union and International Monetary Fund. [ID:nLDE70808M]
The single currency also slid as deep as 1.2451 Swiss francs and 107.05 yen .
The euro was already under pressure last week as investors sold peripheral euro zone bonds ahead of a flurry of debt sales from the likes of Portugal and Spain this week. [ID:nLDE7061KW]
The dollar benefited from the euro's weakness, with the dollar index, which tracks the greenback's performance against a basket of major currencies, rising to five-week highs.
The index was last up 0.2 percent at 81.247, recovering from a dip to 80.7 following disappointing U.S. non-farm payrolls data on Friday
The closely watched report showed a rise of 103,000 jobs in November, short of economists' expectation for 175,000.
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