Anyone watching the global markets in the past few weeks will be convinced armageddon is about to happen. The Euro will collapse and markets will be in free fall. Markets are already down by about 7-10%. But I really have problems with that scenario. The world is a series of major power blocks that determine global commerce and growth. The main blocks now are USA, Europe and China. Their scale allows them huge influence on events.
To imagine that Europe will accept a decline into a fourth rate force is to get carried away with the press rhetoric. If the EU breaks up, the individual countries, even Germany will be minnows in a field of sharks. I think that saner heads will prevail, and this game of brinkmanship that the German financiers embarked on two years ago, will be resolved and a stronger more united Europe will emerge.
Will that Europe contain Greece? I don't know, that will depend on the Greeks, who are fed up with being the bad boys of Europe. Right now Italy Spain and Greece are suffering, with more than 20% of adults out of work, not a pretty picture. If they were not part of the EU they could adjust their currency by a massive devaluation and emerge the darlings, again flooded with visitors and investments.
I continue, at this point to see the falling markets as opportunity. But its a game for the brave.
To imagine that Europe will accept a decline into a fourth rate force is to get carried away with the press rhetoric. If the EU breaks up, the individual countries, even Germany will be minnows in a field of sharks. I think that saner heads will prevail, and this game of brinkmanship that the German financiers embarked on two years ago, will be resolved and a stronger more united Europe will emerge.
Will that Europe contain Greece? I don't know, that will depend on the Greeks, who are fed up with being the bad boys of Europe. Right now Italy Spain and Greece are suffering, with more than 20% of adults out of work, not a pretty picture. If they were not part of the EU they could adjust their currency by a massive devaluation and emerge the darlings, again flooded with visitors and investments.
I continue, at this point to see the falling markets as opportunity. But its a game for the brave.
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