Monday, December 12, 2016

The renminbi struggles to be global, the Euro struggles to be european!

The fear is that an uncontrolled depreciation of the renminbi would spark turmoil in the broader economy and, in an extreme scenario, even lead to political instability.

It will be interesting to watch the renminbi and the euro on the road to 2020!

The Euro and Italy, or should I say German doubts! (see comments section too!)

"The next Italian prime minister will need to explain to the next German chancellor, presumably Angela Merkel, that her choice will not be between a political union or no political union, but between a political union or Italy’s withdrawal from the euro.
The latter would imply the biggest default in history. The German banking system would be in danger of collapsing, and Europe’s biggest economy would lose all the competitiveness gains so painstakingly accumulated over the past 15 years."


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