Hello Le Pen and Good-bye EU?

The French election this Sunday could topple the European Union. I have been saying for years that the Euro is going to zero in the long run. If Marine Le Pen and her Front National Party win this first round, and there seems a good chance that they could, the markets will likely flush the Euro down the drain on the expectation that the EU will unravel. French bond markets, and maybe Italian with them, might freeze up….no bids. 

Given that the model of the super-state ruled by the few has been superseded by decentralization and distribution of power (at least optically), this would be in keeping with the trend.  I said “optically” meaning that is how it looks.  In reality, real power has shifted from politicians to business leaders. International business organizations exercise a lot of clout.

When the world’s biggest economy disintegrates, others will not be immune. Europe’s trading partners will be affected. The summer of 2017 may be interesting.  Deutsche Bank and others that are in a similar condition, won’t be able to band-aid over their severed jugulars. If DB goes under, the jet wash will send a lot of others into the ground.