Sunday, October 15, 2017

Trump - Iran 

Now that Trump will not ratify the compliance needed for Iran to abide by the Nuclear deal , what will happen ?

This needs to be analyzed carefully . Trump cannot cancel the deal but can impose stricter conditions .
It's a tough one as no one wants Iran to have an Atomic Bomb. Also no one wants North Korea to start launching Missiles either .
What is clear that both regimes are trouble , one sponsors terror internationally and the other other is looking to wipe out South Korea .
Mr Trump needs to show both regimes that any step out of line will be punished severely . The problem is that no regime believes him , therefore saber rattling won't help .

Decisive action will be needed that will put both regimes in their place and warn others . 

The Missile Threat and immigration.

The truth is with extreme regimes playing with the their missiles and wanting to impose their lifestyle on others will not be accepted in the West.

As much as the west is very tolerant of N Korea and Iran their tolerance levels are being tested daily.
The influx of immigrants into Europe has shunted the balance to such a degree, that the backlash and resentment is growing.
Recently, the German intelligence service has highlighted that Hizbollah Terrorists which are in fact Iranian proxies are living and acting in Germany.

These terrorists came in as Refugees or under the cover of refugees. It was clear and apparent that this was to happen and Iran, is exploiting the weakness and soft approach by Europe.

Iran is the world leader in terror and has shown time and again that it does not care what the world thinks of it. Once you have a regime that is hell bent on destruction, and Terror then it must be dealt with now. 

Friday, October 13, 2017

Catalonia- the Euro threat 

With Catalonia wanting independence from Spain, what would happen to the Spanish economy and the effect on the Euro .

Well, to be clear the threat of independence and the impact on the Dpannish economy would be a disaster for financial markets . The reason is because Catalonia splitting from Spain would rock the stability of Spain and cause an exit on all fronts . In addition the uncertainty of where the country post split would be going would add further damage .

What we saw in Geeece in 2014/2015, would be considered a tea party to what would be seen globally for a Catalonian independent state. 

Euro 

The Euro would collapse and thus have a significant down wind effect on the rest of Europe. Confidence would be lost in Spain and be a major shock to the EU. This would take months for the EU to recover from this and would send the Euro crashing and financial markets to drop significantly. 

The independence call would have the effect of other minnow states looking for independence . The weak countries of the EU would be under further strain to recuperate from this and cause there economies to drift rudderless .

Bonds 

Bond prices in Spain would collapse and the yield would probably exceed 11%. In addition the other Eurobond prices would be shunted downwards with yields reflecting that downward push.


Summary 

This call for independence by Catalonia is not going away and it's a matter of time before they succeed . Be aware and be prepared as the speed of decent in the markets and the Euro will be very fast .