The columnist Ambrose Evans-Pritchard banged the gong often last year about dangers to Europe from the periphery of the European Monetary Union. Rising asset prices and staving off of a reply of the rapid downward spiral seen in the early 1930's led him to look like an alarmist. The rapid downward spiral seen in Greece this year, with worsening even today, makes him look better. His latest piece is titled Maastricht madhouse fuels EMU-wide contagion from Greece
His points are several and varied. The article is bite-sized and worth a read in its entirety and thus will not be excerpted here.
Gold is well into record price territory in Euro and British pound terms. Reflexively the USD relative strength has prevented that here. And if America were pursuing sound money policies, that currency strength would be well-deserved. Yet such is not the case. Wheels are turning.
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