Austria has just cancelled the sovereign guarantee of one of its states -Kärnten- on the outstanding Hypo Alpe Aria Bank debt. The “Minister of Justice” Wolfgang Brandstetter said to the Press: “One could have never believed in the sovereign guarantee…Every bigger investor should have known that a 25 bn € guarantee taken by an annual state budget of 2 bn € can never work …”
Austria is where the Sovereign Debt Default started in 1931. History once again seems to just repeat even though people refuse to believe that. I reported that Austria could not even pay for gasoline for its troops (they assist NATO but Austria is not par of NATO to be correct).