A lot of questions, but not many answers:
And now for the question I really want to explore today: Is anyone here in the states familiar with the name Marine Le Pen? Ms Le Pen is the head of the far-right National Front party in France whose following is gaining momentum. Ms Le Pen has declared that if she is elected next year, she will post a referendum within six months to exit the EU. If Frexit (France’s exit from the EU) emerges will that be the beginning of the end of the EU? Other countries, like the Netherlands, Austria, Finland and Hungary have said they will go that route also.
The reason I’m bringing this up is because I believe a breakup of the EU will have a systemic risk to the world’s financial system. If this happens I can’t see the EU maintaining its economic unity and maintaining a single monetary policy among all countries.
In the event of a breakup, how will the revitalized currencies be valued and what effect will this have on the world currency markets?
How solid is Italy’s banking system? If Italy fails, does it take the rest of the EU with it? Will the debt crisis in Greece ever be solved? Just like the politicians here, the group that controls the EU financial debt is no different. Their attitude appears to be: “Let’s just ignore it and hope it will go away or maybe we could ride out the problems and leave it for someone else to worry about.”
A great strategy, destined to fail.
I will leave you with one more question: In the end, what will be one of the investments the world will turn to?
I’ll let you fill in the blanks: G _ _ _
Author Name: Walter Pehowich
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