QUESTION: Dear Mr. Armstrong, I have been following you for a few years and what strikes me most is that I read years ago that China would have collapsed in 2020 but that Asia will recover and will be the driving continent from 2036 …
My question is this what do you think of Germany’s decision to print 550 billion euros through the KFW bank in support of businesses and the statements of the German economy minister who says that strategic companies should be nationalized … isn’t that contradicting the so much stressed globalization principle and the “so scandalous” principle of sovereignty?
They claim to use the flexibility that is allowed in the Stability and Growth Pact, but I’m feeling teased while in Italy there is a risk of having to resort to the MES with a further risk of worsening the economic condition.
Thank you for your attention
L
ANSWER: PeterAltmaier, the Federal Minister of Economic Affairs, was joined by the left-wing Schultz in a joint statement that effectively said that since they cannot bail out companies, perhaps they would just NATIONIZE them. Austerity has been imposed on Europe by Germany and the refusal to consolidate the debts was all because Kohl wanted a single currency to increase German sales throughout Europe, but he did not want to accept a true federalization of debt – having your cake and eat it simultaneously.
This has been the disastrous structural flaw of the Euro. It has not worked and what we see is the Coronavirus is being used to reverse that posture and even justify the entire confiscation of private assets by nationalizing companies. This will be the final nail in the coffin of Europe. Why would any investor be interested in European stocks if the government can act like Iran and just confiscate all private assets?
The economic structure is crumbling. This is why China will rise, not so much that it will be so fantastic, but that the West is gradually committing economic suicide. We have so many people repeating the Coronavirus beating it into such a major scare tactic that people are then willing to surrender all their rights when they are being told it is for their own good. I went behind the Berlin Wall before it fell. They told the people it was not to keep them in but to keep others out because Communism was so fantastic. Obviously, Bernie Sanders believed that one.
