Investment - Articles - Europe: a secret inflation plan?

 By John Ventre, Portfolio Manager, Spectrum and multi asset funds, Skandia Investment Group

 In Europe, you may have noticed there's something of a debt crisis been going on. Actually, it’s been going on for a while now, and in the public domain for at least a couple of years.

 For many of us, it’s inconceivable that European policy makers have not developed a plan to quell financial contagion should Greece exit the Eurozone.

 However, Mario Monti said on Thursday: “the culture of stability… risks being undermined because of lack of promptness in setting up the necessary instruments to limit the contagion.”

 Contrary to my own belief, this implies that the Eurozone members don’t have an agreed secret plan. But for the sake of our financial stability let’s hope that the Eurozone does have a secret inflation plan, because the only certain way to solve a debt crisis like this is to monetise the debt, inflating it away.

 In the meantime, the market continues to do their job for them, through a weaker Euro.