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France Bosses The UK But Eurozone Is The Flawed Organization

Date: Sunday, June 26, 2016 12:30 PM EDT

If anyone had any doubts regarding the real position of the Eurozone versus the UK and how that would have played out had Brexit failed, one only has to turn to the behavior of France as an example. With Brexit succeeding,  France ordered the UK to quickly choose the new Prime Minister after David Cameron had resigned. That is quite rude behavior. But we now find out that more than half the French voters  want a referendum on Frexit!

France could have taken the high road, the dignified road. But it showed its true colors even though as I show later, it should get out of the Eurozone as growth has stalled for the young of the nation. The Eurozone would have eventually shown its true colors, maximum austerity and settling for negative interest rates, had the UK experienced any financial shock that could have changed its fortune. And even if the UK had prospered, it would have teamed with Germany to control the entire block. But the concept of nations held hostage to negative rates may run against the grain of UK economics, which rejects negativity in most corners.

It looks like France was a loser in Brexit. The French CAC was down 8.04 percent. The FTSE was only down 3.15 percent. Spain was another loser in the market. The UK does not export goods and services that are important to maintaining a union. But Spain, which may benefit from free trade, is facing massive, horrendous unemployment by staying in the Eurozone.

Growth seems to be fleeting in Italy, Spain and most of the Eurozone especially opportunity for the young.  An entire generation is at risk. This was true before the Euro, but the hopes from adopting the Euro as a solution to this problem have evaporated. A chart listed below proves this to be the case.

 

 

Atrributed to Sodacan, Wikipedia

Spain needs a cheaper currency, but Spain will only get that if it follows the lead of the UK. The amazingly shrinking Eurozone economic system shows us that Italy should come out too. What good is it to have massive unemployment and a smaller economy than Italy possessed in 2000? It makes no sense. 

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