Eurozone crisis summary:How will Brexit Affect Britain & Europe

Eurozone crisis summary

Eurozone crisis summary

Before we get to the main article we would like to present you with a small video and a brief excerpt of  an article that we think makes for a compelling read:

” The one year chart illustrates that all is well on the surface and that the process of flooding the markets with hot money, in general, is working rather well.  The index could drop all the way down to 7200, and the short-term outlook would remain bullish.  We are fully aware that this economic recovery is illusory, but complaining and whining about this does not provide one with any extra insights into the markets. We need to focus on what is really going on and how the masses interpret that data. 

The truth is irrelevant in this instance if only you are the only one that’s aware of it; if the masses think otherwise,  then no matter what you say, nothing is going to change their mind.  What appears as the truth to you could, in fact, be viewed as a lie by the crowd.  The truth can set you free, but in most cases,  it can be detrimental to your health and wealth; at least as far as the markets are concerned.  ” Fed Interest Rate Hike Cycle Illustrates Economic Recovery is a Hoax

 

Eurozone crisis summary; Outlook going from bad to worse?

The fall, the fastest in nearly seven years, raised alarm bells for economies across Europe and added further pressure to arguments in favour of a strong and tightly regulated eurozone.

Among the drivers of the decline was Germany, whose private-sector feared a growing threat to international trade as a result of the US-China trade war, of which had left it in the worst position since 2009.

Germany is often referred to as the powerhouse of the 19-member currency bloc’s economy, though Germany itself has suffered a year-long economic slow down that has quickened in recent months.

The German purchasing managers’ index (PMI) for manufacturing fell to 41.4 in September, from 43.5 in the previous month, and well below the 50 mark that separates expansion from contraction.  This decline led to a deepening in manufacturing recession across the eurozone.

Output fell at the sharpest rate since 2012 and optimism among business executives fell to its lowest level for seven years. Among those worse hit were car manufacturers by a rise in Chinese and US import tariffs, as well as preparations for the UK’s departure from the EU.  Full Story

Eurozone crisis is Just Another Event for Central Bankers To Run The Press

The eurozone debt crisis was the world’s greatest threat in 2011. That’s according to the Organization for Economic Cooperation and Development. Things only got worse in 2012. The crisis started in 2009 when the world first realized Greece could default on its debt. In three years, it escalated into the potential for sovereign debt defaults from Portugal, Italy, Ireland, and Spain. The European Union, led by Germany and France, struggled to support these members. They initiated bailouts from the European Central Bank and the International Monetary Fund.

If those countries had defaulted, it would have been worse than the 2008 financial crisis. Banks, the primary holders of sovereign debt, would face huge losses. Smaller banks would have collapsed. In a panic, they’d cut back on lending to each other. The Libor rate would skyrocket like it did in 2008.

The ECB held a lot of sovereign debt. Default would have jeopardized its future. It threatened the survival of the EU itself. Uncontrolled sovereign debt defaults could create a recession or even a global depression. Full Story

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Negative Interest Rates favour Speculators & Punish Savers (18 Jun)

Making Money in a low-Interest Rate Environment (18 Jun)

Fed Interest Rate Hike Cycle Illustrates Economic Recovery is a Hoax (18 Jun)

Currency Wars Force Swiss Bank to Abandon Targets For Swiss Franc (18 Jun)

Negative Interest Rates Help Foster Economic Recovery Illusions (18 Jun)

High-Interest Rates not necessarily Good for Banks (17 Jun)

Safe Sales Skyrocket in Japan due to Negative Rates (17 Jun)

Putin betting On Britain leaving EU (17 Jun)