Angela Merkel and Nicolas Sarkosy have yet again come up with a new fix to the Euro crisis. Place big fines on countries who run up big deficits......Which brain donor thought that one up then? With most Euro land countries already running massive deficits its a bit like closing the door after the horse has bolted.
Lets look at how these countries can significantly reduce current deficits by likening it to house hold bills, reduce overheads on council bills, Police and interest payments (your mortgage, utility bills and credit cards) and increase gross domestic product (your wages). Now, as we all know our friends at the bank don't like lending money any more, the money supply has shrank which means no/low economic growth (wages). So how else can the Government reduce its debts? Inflation!!! brought on by quantitative easing (printing money out of thin air)
Either way the out look is grim. Europe's leaders either don't have the political will or don't know how to fix this crisis. Keep in touch and we will explore ways to protect your wealth from the up coming crash.
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