Market Talk – April 4, 2025
ASIA: The major Asian stock markets had a negative day today: • NIKKEI 225 decreased 955.35 points or -2.75% to 33,780.58 • Shanghai closed • Hang Seng closed • ASX [...]
Italy & the Euro
QUESTION: Dear Mr Armstrong,
When will the Euro begin the final drop against the USD?
My second question is property in Italy seems to be rising. Is this what you referred to a currency inflation?
CDP
ANSWER: The decline in the euro since 2008 has been steady, but gradual to some extent. The EU government has been warning banks not to accept short positions and they have done their best to try to hold the currency. The final blow comes ONLY when the general public realizes that there is a problem with all central banks. They cannot support the economy while the fiscal side makes no effort at reform. That is more likely in the 2021-2022 time period.
As far as property in Italy is concerned, Italians have a cultural attachment to property. Many have more than one place. They have traditionally sought to park money in property because the Italian lira was in a perpetual decline.
Pension funds on a global scale will become a major crisis. Japan has the worst aging population. However, the same problem exists in Europe and America. This is a long-term issue rather than instantly, right now.
Latest Posts
Trump’s Tariffs are Winning
I have said on various podcasts that a 10% tariff is really a tariff. Beyond that, it is political to force free trade. Most countries are dropping tariffs on [...]
Tariffs are NOT Reciprocal
How did the Trump Administration come up with these tariff rates? Why would a nation like Madagascar, for example, with a small economy, be hit with a 47% tariff? Reciprocal [...]
Eric Adams Leaves the Democratic Party
New York City Mayor Eric Adams, the man who fought tooth and nail to maintain sanctuary city status for migrants, has abandoned the Democratic Party. The Democrats have become so [...]
