← Back to All Videos

The European Union doesn’t have the Resources to Support 5 Members Failing Economies

Blog May 7, 2010

The Euro is loosing buying power daily against other global currencies and flights out of the troubled Euro (to GOLD and the IMF’s SDR’s, NOT DOLLARS) are fueling global concerns for the economic future of the G-20 and the dollar.

The PIIGS (Portugal, Italy, Ireland, Greece and Spain) are also on the verge of economic implosion. This 20 member union does not have the deep pockets needed to support one failed economy (Greece) let alone 5 of its members. This house-of-cards has a huge global impact as all financial markets, which are now and forever interdependent, rely on each other for liquidity, financing and investment.

The crisis has become so critical that the IMF is convening next Monday May 11th to discuss some drastic measures to save the G-20. One topic of discussion, expanding the IMF’s SDR’s, this would hasten the replacement of the dollar as the world reserve currency. IMF meeting press release: http://www.imf.org/external/np/sec/pr/2010/pr10171.htm

The stock market took a wild ride Thursday loosing almost 1,000 points before finishing the day with a net drop of 347 points. The fundamental fears of a potential domino-effect economic collapse still remain in Europe and Wall Street’s blood pressure is spiked waiting for the next shoe to drop. 5/6/2010 Wall Street Journal, Market recap: http://www.marketwatch.com/story/us-stocks-struggle-data-retailers-in-focus-2010-05-06

The US markets and the dollar have real problems of their own and the possible European start, of a global financial meltdown aren’t making the dollar an attractive alternative. Gold is looking better with every market report.

CNBC video on the crisis in Greece and the economic fallout:
http://classic.cnbc.com/id/15840232?video=1485831315&play=1

Watch for the press conference after the IMF meeting next week there is a lot riding on its outcome.

Assessment of the IMF & World Bank April Meeting
http://www.brookings.edu/opinions/2010/0430_global_governance_lombardi.aspx

April 24th Bailout too Little too Late?
http://news.yahoo.com/s/afp/20100424/bs_afp/imffinanceecono

Thumbnail Photo We believe that everyone deserves a properly developed strategy for financial safety.

Lynette Zang

Chief Market Analyst, ITM Trading

Sources & References In This Article

    Similar Posts

    Blog Jan 9, 2020

    REAL OR FAKE GOLD, BIG VS SMALL BANK DEPOSITS… Q&A with Lynette Zang and Eric Griffin

    Learn More
    Blog Nov 28, 2018

    ENTERING THE MINEFIELD: Is Your Armor Ready? By Lynette Zang

    Learn More
    Blog Nov 27, 2018

    RECESSION to RESET: What Happens Next? Q&A with Lynette Zang and Eric Griffin

    Learn More
    Blog Nov 21, 2018

    A GLOBAL THREAT US & China Clash of the Titans

    Learn More
    Blog Nov 20, 2018

    PRECIOUS METALS STRATEGY: Get the MOST from Gold & Silver. Q&A with Lynette Zang and Eric Griffin

    Learn More
    Blog Nov 16, 2018

    IS THIS IT? Corporate Buybacks vs ETFs By Lynette Zang

    Learn More
    Blog Nov 14, 2018

    ETF-YOU: Will You Get Screwed? By Lynette Zang

    Learn More
    Blog Nov 13, 2018

    THE FUTURE OF GOLD: As Economic Patterns Shift. Q&A with Lynette Zang and Eric Griffin

    Learn More

    Not Sure What Works for You?

    Our team has over a century of combined experience in guiding our customers to the best products is for their wealth protection and preservation goals. Call us today.

    888-696-4653
    or schedule a call

    Schedule A Strategy Session

    Get Your Free Protection Guide

    Stay Informed

    Receive the latest updates regarding the economy.

    Send this to a friend