Here are two stories I just read that are begging to be posted together.
Bloomberg has the story Soros Sees New Global Financial Crisis Brewing, EU Under Threat.
A surging dollar and a capital flight from emerging markets may lead to another “major” financial crisis, investor George Soros said, warning the European Union that it’s facing an imminent existential threat.
I don’t swear to George Soros’ accuracy, but I do pay attention to what he says. Having known that the stock market has been in a bubble for years, I hope I am already positioned to handle this.
New Economics Perspectives has the second article The New York Times Praises the Italian Establishment’s Economic Illiteracy and Assault on Democracy.
The euro is a terrible creation that has caused immense harm. The eurozone violates even the neoclassical economic requirements for an “optimal currency zone.” Every honest economist recognizes that fact. Stephanie Kelton was one of a material number of economists who predicted the euro’s inherent problems over 15 years ago. The NYT presents opposition to Italy’s membership in the euro as bizarre and obviously bad economics. In reality, it is even good neoclassical economics. German neoclassical economists, for example, typically think that the EU should never have allowed Italy to adopt the euro. If you have freed yourself from neoclassical nostrums, your opposition to the eurozone will be even more profound. The NYT authors’ first lie is the wacko claim that Conte was “planning to sneak out the back door of the eurozone.” It would take too many paragraphs to explain each aspect of nasty, dishonest rhetoric contained in that single clause, so I will shorten my response: BS.
When William K. Black posts a warning too, and I look at the European stock markets this morning, I start to wonder if this is going to be an “interesting” day on Wall Street.