Two vicious circles are at work with a wounded financial system contributing to both.

两种恶性循环正发生作用，而受伤的金融体系对两者都起到推波助澜的作用。

Since these bonds would be guaranteed by the European Union as a whole, they would offer a way for troubled economies to avoid vicious circles of falling confidence and rising borrowing costs.

这种债券由欧盟作为整体提供担保，可以为问题的国家提供一条防止陷入信心下降、借贷成本上升恶性循环的一条途径。