If the ECB Prints then….
Rumors are swirling that the U.S. and France are trying to convince Germany to let the ECB print. Given how important the Eurozone seems to be to all the Eurocrats, I’m starting to think that something could happen that catches everyone off guard.
Germany leaves the Euro.
Will Germany allow the ECB to print with reckless abandon, with the country’s inflation is as high as it is? Remember, their economy is doing well. Their unemployment rate is extremely low historically. That type of environment is much better suited for inflation to flare up. They haven’t forgotten Weimar and should the ECB print, it would be a step in that direction in their eyes. Note that oil is making a run at $100 and gold is aiming for the highs once again.
It’s all speculation, but don’t write off this scenario.