With the heads of Germany and the European Central Bank getting along about as well as Obama and the Tea Party, the European Union is moving quickly towards total political failure. Weeks of disagreement by Europe’s political and financial leaders have let the crisis move far ahead of their discussions.Last week Italy was dragged into the morass when yields on Italian treasury bonds popped above 6%. According to Goldman Sachs analysis, Italy cannot service the debt should yields reach 7%, potentially escalating the European debt crisis to full meltdown.
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