by John Galt
August 6, 2012 21:25 ET
For some strange reason, I don’t think Germany and Italy have been barking at each other this much since 1943. And wow, does this dispute make that verbal sparring between Mussolini and Hitler look meek compared to what is going on between Merkel and Monti now.
Ambrose Evans-Pritchard covers this dispute tonight in his commentary in the U.K. Telegraph:
How bad is it? Check out this snippet from the article:
The dispute comes as relations between Germany and Italy touch the lowest ebb since the Second World War, with Il Libero publishing a front-page picture of Chancellor Angela Merkel under the headline “Fourth Reich”.
And sure enough, here it is:
Needless to say, the German government is not amused and the coming conflict on forcing the German people to fund the horrid economic structures of Italy and Spain will meet great resistance unless Merkel convinces everyone that the Euro must survive. Unfortunately for Berlin and Brussels, currency traders and the Fed are quite happy to leave the ECB and EU twisting in the wind as the currency bounces between 1.21 and 1.30.
Click on the link at the top to read the commentary from AEP in full.