According to AEP's latest, the Japanese and other Asian central banks are dumping German bonds. Traders say Asians are taking profits on bonds and pulling out, with signs that even China's central bank is shaving holdings:
http://www.telegraph.co.uk/finance/f...EMU-chaos.html
If that's the case, it's over. According to the article, Swedish debt (non-euro) is now yielding under German debt for the first time in modern history.
Again, if true, this means the Asians have decided that European leaders can't solve the crisis, and it will bring down Germany when it blows up, meaning German debt is no longer safe. I sure can't see Beijing riding to the rescue. Uncle Sam might try, be he'd be slow getting there in his debt riddled wheelchair.