THE E.U. WILL GET SMALLER AND THE EURO WILL DROP
The people of the British Islands have always had disdain for the people of mainland Europe.
The Brits in the past were the Celts. They were much more intelligent and better warriors than the Romans, Gaul’s (French) and even the Germans, as we saw at the end of the Second World War when Germany was handed a sound defeat.
The Celts, with their red hair and large brains, had evolved from the Neanderthals with whom they had intermarried. When the Romans defeated the Angles in southern England they went further north and fought the Scots, the true Celts, and the Romans were soundly defeated.
The Celts or Scots were so vicious that the Roman leader, fearing a conquest of London, built a wall between Scotland and England to protect his hard won territory. That wall, Hadrian’s Wall, still stands in the U.K. today; evidence of the fact that the Celts, known as the Scots, were tougher and braver than the mighty Romans who had conquered all of continental Europe.
Today we are seeing the Celtic mentality in action, telling the Europeans that they do not want to be integrated into the EU. It is notable that the Brits, under Thatcher, also decided not to give up the Pound Sterling, which to this very day is worth more than the Euro.
Hungary, Sweden and the Czech Republic have also decided not to be part of the group that is out to preserve the Euro.
This is the beginning of a division in the EU. As the Euro weakens, it is my opinion that other states will also withdraw.
WHAT IS THE DISADVANTAGE OF THE EURO?
The value of the Euro lies in the fact that it represents a large number of people. This fact artificially raises its purchasing power in the world.
However, this is a great disadvantage to countries that want to host tourists to their country. Because of the higher value of the Euro hotel rooms and food for tourists are higher than they would be with a local currency. People automatically are dissuaded from going to Euro countries by the higher cost.
In addition, products and food produced in the Euro zone are higher than competing products from Asia or Africa or Latin America. This causes inflation, which we are now seeing, in the Euro zone.
Worst of all, countries that wish to borrow money in order to subsidize their living standard, are paying a premium in interest rates as the Euro becomes a weak currency due to the fiscal fragility of the European Union.
BANKS ARE PREDICTING A EURO DROP
Most major European banks are predicting that the Euro will fall from 1.35 versus the U.S. Dollar, to 1.25 versus the U.S. Dollar. I totally agree with these predictions.
Whoever buys Euro denominated bonds will suffer an eight percent currency loss if these predictions come true. This weakness will lower the value of all Euro denominated bonds.
CONCLUSION
The E.U. with the loss of the U.K. and other countries is on the path to becoming smaller and weaker. The Austerity Measures put in place for the southern tier of countries has already produced economic recessions with high unemployment throughout the South.
It definitely appears as though Germany will experience another loss in Europe. This will not be a military loss, but a loss in her economy.
In contrast to Germany, the small countries of Europe, like Switzerland, with their own currencies are doing extremely well and will do extremely well.
More evidence that Big is Bad.
I predict that Germany will suffer unemployment just like her neighbors. Not all workers in Germany are producing materials for export.
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