Over the weekend I caught a good interview that Jim Puplava conducted with economic commentator Gonzalo Lira about possible shakeout ramifications for the Euro as a result of the accelerating sovereign debt crisis in Europe.
Lira laid out two potential scenarios:
- The PIIGS withdraw from the Eurozone, leaving the sounder core member (Germany, France, etc) to carry the Euro on in fiscal harmony.
- The PIIGS stay onboard and take down the system.
He makes a comment that jives with recent things I’ve read as well – that Spain will likely suck up all of the available bailout funds and then some when it goes down. And that doesn’t even account for the real 800 pound gorilla kicking it in Club Med – Italy – which will thump even louder than Spain WHEN it’s sovereign trash floats to the surface.
You can catch Puplava’s interview with Gonzalo Lira here.
More on Europe: Spreads on debt continue to climb for the PIIGS.
Recent Comments