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Found an interesting insight on Zero Hedge today that has far more implications for the near future than weak PMI numbers out of China. The largest communist country continues to divert attention from the biggest problem in the socialist world.

France.

"The euro came under pressure due to the surprise collapse in new Eurozone industrial orders which led to Germany failing to get bids for 35% of bunds offered. The German 10-year bund yield rose sharply from 1.92% to over 2.06%. This is one of Germany's worst auctions since the launch of the Euro with the Bundesbank having to pick up nearly 40% of the 6 billion euros on offer. . .

The bond auction in Germany is a disaster. If Germany has to buy its own bonds, it is frightening to think how other European nations, including France, will fare at bond auctions in the coming weeks."

Maybe this is why is why Sarkozy is squirming. Get a load of these:

• SARKOZY SAYS EURO ZONE MUST FURTHER INTEGRATE
• SARKOZY SAYS TROUBLED EURO COUNTRIES DIDN'T UNDERTAKE REFORMS
• SARKOZY SAYS EURO ZONE MEMBERSHIP IMPLIES OBLIGATIONS
• SARKOZY SAYS EUROPE'S FUTURE REQUIRES CONVERGENCE

This guy is screwed if the Euro Zone unwinds. So his answer is more federalism. But the markets have other ideas, as they always do. That is why governments hate markets.