A Flight to Treasuries?
Some believe that Donald Trump is deliberately attempting to cause a sharp downturn in equities to force a flight into treasuries. If so, the Federal Reserve would have more [...]
The Risks Are in the Eurozone Banks But Beware of Global Contagion
QUESTION: Sir,
Given the liquidity crisis and the problem to arrive from Europe, I have a question for us Europeans:
when you are talking about Europe and failures to come, you mean:
1. euro zone countries ONLY?
2. EU countries which still hold their currency (eg. Romania)?
3. what about the UK?
Thank you.
SM
ANSWER: The policy of a bailout will be carried out by the central bank. Those members of the EU who are NOT in the Eurozone will fair much better than the Eurozone banks. This is one reason countries should NOT join the euro at this time.
However, there will be risks for non-Eurozone banks deeply involved in derivatives. They will probably have exposure that can lead to losses emerging from the Eurozone which is rejecting a bailout policy. This could lead to a global contagion that will result in a major political backlash against the EU.
Latest Posts
Part II – Gold Manipulation?
https://www.armstrongeconomics.com/wp-content/uploads/2017/11/Barclay-Goldman.mp4 PART II QUESTION: Is he breaking the London metals dealers’ hold to suppress the gold price? FD ANSWER: I am tired hearing the same constant bullshit about gold is [...]
The JFK Conspiracy Has Protected Neocons for Decades
James Garrison served in the U.S. Army Air Forces during World War II, joining the year before the Japanese attack on Pearl Harbor. Jim Garrison’s military career trained him as a [...]
The 2025 Crash?
COMMENT: My hats off to you if your call for today’s low holds for a few weeks and/or for the year. I would have thought a retracement to the 62-fibo would [...]
