As some war novels picture, paratroopers on World War II, relating the moment right before they leap ( the point of no return), young soldiers would set their jaws, clip onto the static lines and jump into a suicide mission. That's the point that Germany and all other countries of the European Union find themselves now.
The center of world attention now is Germany economy, as leader of the European Union it's economic performance is the benchmark that it's going to set the expectations over other members economy. Unfortunately, the perspectives are getting worst as signals of global recession growing louder, and Germany is already operating in negative yields of the bonds, with a $ 2.1 Trillion negative-yielding debt, as Europe holds $8.7 Trillion in this type of debt. Even if the Germany government willing to spend $55 Billion in case of a crisis, this effort looks small in front of the complexity and size of what is becoming a serious problem ahead.
Another thread in UE horizon is the Brexit turmoil getting worse as U.K. Prime Minister Boris Johnson seems unable to close a deal since after his fail attempt to suspend parliament making the agreement less likely than ever.
Beyond all of these problems, Germany has a greater one that has the power to trigger a more significant crisis than the Lehman Brothers started a decade ago. This time bomb is called Deutsche bank, an institution that it's trapped in an endless crisis, of a bank that daily deals with trillions of dollars from the Forex Market. All these factors make the European Union future horizon, cloudy and with winds of a storm.
Thank you for reading and leave your comments if you like.
Disclaimer: All content of Golden Dragon has only educational and informational purposes, and never should be used or take it as financial advice
The center of world attention now is Germany economy, as leader of the European Union it's economic performance is the benchmark that it's going to set the expectations over other members economy. Unfortunately, the perspectives are getting worst as signals of global recession growing louder, and Germany is already operating in negative yields of the bonds, with a $ 2.1 Trillion negative-yielding debt, as Europe holds $8.7 Trillion in this type of debt. Even if the Germany government willing to spend $55 Billion in case of a crisis, this effort looks small in front of the complexity and size of what is becoming a serious problem ahead.
Another thread in UE horizon is the Brexit turmoil getting worse as U.K. Prime Minister Boris Johnson seems unable to close a deal since after his fail attempt to suspend parliament making the agreement less likely than ever.
Beyond all of these problems, Germany has a greater one that has the power to trigger a more significant crisis than the Lehman Brothers started a decade ago. This time bomb is called Deutsche bank, an institution that it's trapped in an endless crisis, of a bank that daily deals with trillions of dollars from the Forex Market. All these factors make the European Union future horizon, cloudy and with winds of a storm.
Thank you for reading and leave your comments if you like.
Disclaimer: All content of Golden Dragon has only educational and informational purposes, and never should be used or take it as financial advice