The engine of Europe – Germany – will not save anybody if economy is weak. German imports and exports fell sharply in February for the third time in the last four months, which indicates some problems.
It was the week of central bank announcements – Japan (we will describe it below), Britain and ECB.
Russian businesses and banks are starting to consider some legal action against Cyprus or individual banks, but some lawyers predict that they may have a hard time winning their case.
First of all, Cyprus has a small economy and the rescue package is something about € 16 billion, approximately € 3 billion less than last year’s loss of Bankia – the Spanish bank.
It is more than clear that we have two blocks in the EU – the austerity block, lead by Germans supported by Finland, Austria or Luxemburg, and the anti-austerity block, lead by France supported by Spain, Italy, and Portugal. Who will win? What do you think?
Let’s begin with currency wars once again. Why? It is a real current issue.
Spain has definitely become a time bomb. The official GDP is predicted to decline 2% in each of the two following years pushing unemployment probably over 28% and public debt from 88% to 110% of GDP.
Gold and silver are still in the correction phase. Switzerland is going to introduce a gold coin as official currency. Swiss army is prepared. Mario Draghi will kiss with everybody. Gold and silver were traded around $1737 and $32.7 per ounce at the beginning of the week. The story for this week is very similar as was for the previous one – correction. Both metals were smashed down on Monday but we could witness some…