EUROPE AGAINST THE ROPES?
The European Union is in trouble. Its amorphous structure, formed by an amalgam of different states in culture and economy, always at the service of Germany, can see its economy plagued by the recent devaluation of the yuan. For now, the shaking of the Chinese currency, has dropped its value to equal each dollar to 7 yuan.
As a result, the euro has been revalued against the dollar. This trend could intensify if Trump decides to use his Twitter account, a weapon of mass destruction for the markets.
Yes, I have not gone crazy. China has devalued its currency this week, sowing panic in the markets and making the US its main rival nervous. In recent weeks, we have seen how President Trump complained about the strength of the dollar, accusing it of harming the US on a commercial level. Therefore, it would not be surprising if the American president decided to devalue the dollar.
Meanwhile, what does Europe do? Despite its economic weight, Europe paints nothing in the world. He is a political dwarf, who walks through history contemplatively without taking any resolution. If the currency war between China and the United States began, Europe could not devalue its currencies, all of them subject to the tyranny of the euro. The common currency is a loyal servant of the German oligarchy, the tip of the heel with which Merkel crushes southern Europe.
Can a perfect storm be triggered in Europe? Yes: with minimum interest rates, the ECB does not even have ammunition to deal with a trade crisis. As if that were not enough, the latest data point to a slowdown in the economy, as industrial exports have been slowing in recent quarters.
Europe has one of the most open economies in the world, and in recent years, southern countries have been displaced by the orthodoxy of the ECB, which is why the Eurosceptic parties have grown, those who put the establishment alone European. In Italy, the North League of Mateo Salvini already rules in coalition, and recent polls give him an intention to vote close to 40%. Also other nations, such as Hungary and Poland, have been reluctant to cede sovereignty to the dictates of Brussels.
The devaluation of the yuan could accelerate the arrival of a new economic crisis. This will further agitate the dissenting positions, which have led to powerless governments and caused unforeseen events such as Brexit. Europe against the ropes? If it doesn't change course, of course.