_ All year long no matter what Merkel and Sarkozy did, the markets liked it for a day or two and then went back to their doldrums about the EU bond crisis. In July there was euophoria when they supposedly reached a deal about the second Greek bailout. But that was very short-lived. Merkel and Sarkozy have tried more and more measures since, including the most recent proposed treaty change. Apparently the markets think that these are all steps in the right direction, but none of them go far enough.

What would be far enough? If having a new treaty with teeth isn’t enough for the bond investors, they must think that there must be a political union of Europe and not just an economic one. Countries would have to be governed from Brussels and not just their economies. Everybody knows that’s never happened in all of history in any kind of democratic fashion, the latest attempt being the Third Reich.

So maybe all this does signal an eventual breakup of the EU. Not just Great Britain will be out but everybody.