Here’s an interesting little note from Warren Mosler. An email exchange highlights Norway’s dumping of peripheral bonds. So while it sounds like the core wants to hold the line and keep the Euro together, it seems many northern European nations are also preparing for the worst case scenario:
“Norway’s oil sovereign wealth fund has sold all its holdings of Irish and Portuguese government debt and reduced its ownership of Spanish and Italian bonds as part of a continuing protest over its forced participation in Greece’s debt restructuring. The fund also reduced its Italian sovereign debt position from about EUR 8bn in the middle of 2011 to about EUR 3.5bn at the end of March this year.”
Is this a case of “do as they do, not as they say”? I certainly don’t know. But I still think European investment options are a guess as to the predictions of politicians. And as I’ve said before, I might pretend to be able to predict the madness of crowds, but I certainly don’t pretend to be able to predict that madness of politicians!
* UPDATE – The author, one Cullen Roche, suffered a brief black out during the writing of this article and mistakenly thought the Netherlands and Norway were the same country. Please excuse any errors. Future black outs will be avoided through regular injections of more caffeine.