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So far, it has been a quiet August on the markets. And that is probably due to the absence of political interference in share prices. The Eurozone\u2019s problems are still there and remain the same, albeit exacerbated by the relentless passage of time, but they seem to have been temporarily sidelined. The fact is that those responsible for the problems \u2013 namely the political class of the EU\u2019s Tower of Babel and its Eurocrats \u2013 are on holiday. And it shows.<\/p>\n
Because, despite all the inherent problems of the Eurozone, what hurts Mr Market most is the ineffectiveness of politicians and their tendency to put their own interests before those of Europe. Their nationalism, their short-sighted focus on electoral gains, their incompetence and their lack of financial literacy are just some of the common traits of the political class that is supposedly supposed to solve the Eurozone\u2019s problems. And so it goes. That is why, when this whole bunch of incompetent and corrupt politicians goes off on holiday, the markets take a breather because valuations are very low. Prices in the European periphery have been punished by politics for years now, and as soon as politics loses its way, things return to more reasonable valuations (and we\u2019re not talking about financial assets but industries linked to the real economy).<\/p>\n
We also believe that a golden opportunity is being missed, because if the economic situation in the periphery continues to deteriorate irreversibly, there will come a point when Germany will no longer agree to foot the bill in exchange for sovereignty. Quite simply, the losses that would have to be borne to maintain the Eurozone could become dangerously comparable to those that would have to be borne by leaving it and returning to the German Mark. And if we reach that point of no return, we will have lost the German locomotive for good. And we will be left with a European train with many carriages at the rear, which will have lost its high speed and will have become a commuter train once again. A very sovereign commuter train, mind you.<\/p>\n As we were saying, for the time being, \u2018politics\u2019 with a small \u2018p\u2019 is giving the markets a breather. And whilst that may not solve anything, it at least allows us to catch our breath so we can hold out a bit better this coming autumn, when the sun-kissed politicians set about earning their pay once again.<\/p>\n <\/p>","protected":false},"excerpt":{"rendered":" Pl\u00e1cido mes de agosto est\u00e1n teniendo los Mercados hasta el momento. Y probablemente eso sea debido a la ausencia de interferencias pol\u00edticas en las cotizaciones. Los problemas de la Eurozona siguen ah\u00ed y son los mismos, aunque agravados por el implacable paso del tiempo, pero parecen aparcados temporalmente. Y es que los generadores de problemas, […]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38,37],"tags":[],"class_list":["post-1837","post","type-post","status-publish","format-standard","hentry","category-actualidad","category-reflexion"],"_links":{"self":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/posts\/1837","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/comments?post=1837"}],"version-history":[{"count":0,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/posts\/1837\/revisions"}],"wp:attachment":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/media?parent=1837"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/categories?post=1837"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/tags?post=1837"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"http:\/\/taquetaque.com\/wp-content\/uploads\/2011\/06\/20110601elpepivin_1.gif\")
Does this mean that without politicians the stock markets would rise and problems would tend to be resolved? Unfortunately, it\u2019s not that simple. Politics with a capital \u201cP\u2019 is necessary, but that capital \u2018P\u2019 has been off the map for decades now, and all we see is mediocrity and foolishness amongst European leaders. Something as vital to building a stronger Europe as the transfer of sovereignty is currently the main bone of contention, as we already warned in \u201cSovereignty: The key to salvation or eviction<\/strong><\/a>\u201c. And political pettiness is preventing this definitive transfer of sovereignty in favour of a more sovereign Europe. State nationalism and the cruellest form of electioneering are standing in the way. That is why politics finds itself at a dead end, from which they do not wish to find a way out, demanding the impossible \u2013 namely, infinite German money in exchange for promises of austerity measures.<\/p>\n