Darker clouds over Europe
“Not only is Europe’s expansionary cycle fading, but the region is about to face challenges that it has to tackle amid growing political fragmentation. Italy slipped into recession in the fourth quarter of 2018, according to new data. France continues to be haunted by Yellow vests protests. Germany has entered an era of uncertainty. And Brexit overshadows the UK future. In the absence of Trump’s tariffs, Europe could have benefited from a nascent recovery of world trade, investment and finance. But now even these hopes are diminishing.”
USAGOLD note: It seems, with all the problems Steinbrock mentions coming to a head simultaneously, that Europe is one trigger event from a major unraveling. Gold demand is running at high levels on both sides of the English Channel.