Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199

 

Search Silver Prices
Silver Price
[Most Recent Quotes from www.kitco.com] Our RSS Feed

Silver Updates by Mail

Enter your email address:

Follow Us on Twitter
« Finding Silver's Bottom! | Main | David Morgan Displays Old Glory Mint Products During TV Interview »
Thursday
Oct062011

Germany to Quit the Euro? - Philippa Malmgren

Philippa Malmgren

The Eurozone crisis will end up with Germany quitting the common currency says economic commentator Philippa Malmgren of Principalis.

My view is that it is Germany that will have to pull out of the euro,‘ said Malmgren, speaking at Threadneedle Investments’ European conference in London on Thursday. ‘The decision has already been made by the government that leaving the euro is a possibility.’

I think they have already got the printing machines going and are bringing out the old deutschmarks they have left over from when the euro was introduced.’

A former economic advisor to George W. Bush during his presidential campaign, Malmgren recognises a German exit would be a radical move and would mean a sudden rise in its export prices. But she believes Germany’s industries are in a strong enough position to deal with high prices in the near future.

Leaving a currency union has happened many times before, she added, pointing to a report published by the Monetary Authority of Singapore in 2007 which analysed countries’ departures from monetary unions.

The report entitled 'Checking out: Exits from Currency Unions' analysed close to 70 distinct countries that left a currency union. It found that leavers tend to be larger, richer and more democratic and also tend to have higher inflation.

However, the report states, there is ‘little macroeconomic volatility around the time of currency union dissolutions, and only a poor linkage between monetary and political independence. Indeed, aggregate macroeconomic features of the economy do a poor job in predicting currency union exits.’

Malmgren, who is an adviser to some of the world’s leading asset managers and a co-founder of Principalis Asset Management, believes we are going to see a profound change in the fabric of society as increasing numbers of countries will default on their debt.

The focus of the markets right now are on all the other countries in the eurozone. Greece is done. We need to start looking at the others. Belgium will not have to assets to bail itself out of its debt problem.’

The question on the market’s mind is the multiple defaults in Western Europe. It is important to begin preparing the public to deal with this situation.’

..............................................................................

We were of the opinion that Germany was benefiting from a weak Euro via its export market. One would imagine that the introduction of a new Deutschmark would negate the advantage of a weak currency, however, we shall see!

 

Regarding www.skoptionstrading.com. We currently have a number of open trades at the moment however, we do not update the charts until the trade is closed and the cash is back in our account. 

Our model portfolio is up 407.38% since inception

An annualized return of 113.83%%

Average return per trade of 42.43%

86 closed trades, 83 closed at a profit

Average trade open for 45.85 days

So, the question is: Are you going to make the decision to join us today.

Stay on your toes and have a good one.

Also many thanks to those of you who have already joined us and for the very kind words that you sent us regarding the service so far, we hope that we can continue to put a smile on your faces.

To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address.  Winners of the GoldDrivers Stock Picking Competition 2007 

For those readers who are also interested in the silver bull market that is currently unfolding, you may want to subscribe to our  Free Silver Prices Newsletter.

For those readers who are also interested in the nuclear power sector you may want to subscribe to our Free Uranium Stocks Newsletter, just click here. 

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>