Rotating Blades -- Meet Guano

The lid may be about to come off the European debt crisis.  Angela Merkel no longer has the votes in the Bundestag to back the rescue packages for the Euro.  Thus, Germany may be heading to a Constitutional crisis, and the Euro may be headed for a fall.

Mrs Merkel has cancelled a high-profile trip to Russia on September 7, the crucial day when the package goes to the Bundestag and the country's constitutional court rules on the legality of the EU's bail-out machinery.

If the court rules that the €440bn rescue fund (EFSF) breaches Treaty law or undermines German fiscal sovereignty, it risks setting off an instant brushfire across monetary union.

The seething discontent in Germany over Europe's debt crisis has spread to all the key institutions of the state. "Hysteria is sweeping Germany " said Klaus Regling, the EFSF's director.

Europe is about a month away from it all coming apart and the Euro being reduced to a few specific countries (if it survives at all).  This should have the effect of driving investors to the US dollar as a safe haven--unless our Chinese creditors convince the world that the yuan is the new international currency (which, considering their overheating economy, may be their plan all along to obtain the investments required to keep the lid on their own bubbling pot).

As I noted earlier, it's time to harden up and batten down the hatches, because our current Administration will not have clue one in how to deal with the coming storm.

Hat tip: Reuters, the Telegraph