THE NEW WORLD DISORDER: From BREXIT to TRUMP to ITALY: France Is Next And The EuroCurrency Project Is Doomed

The rising global tide of anti-establishment, protectionist populism continued tonight on the European continent.

Italy’s Prime Minister, Matteo Renzi, their youngest prime minister ever and the de facto leader of the Party of European Socialist was soundly defeated in his attempt to reform the national government and limit the power of regional representation. As a result, he has announced his immediate resignation.

 

 

The verdict was a resounding victory for Italy’s own ‘Eurosceptic’ political movement and push for their own new government and potential shift towards the rising Five Star Movement led by Beppe Grillo, a very popular comedian and social figure within Italy.

The NO verdict in tonight’s Italian referendum will likely lead to a new national election for a new leader, and a potential future national referendum in 2017 to leave the Eurozone if the Five Star Movement takes control of the government.

 

 

So what happens next? We believe that nationalistic, pro-BREXIT Italy’s Five Star Movement party could come to power in 2017, and as a result lead the country in a vote to leave the Eurocurrency.

In April of 2017, with the French Elections tipping towards their own rising star, Eurosceptic Marine Le Pen, the European Union could eventually collapse as an entity after the French election outcome.

Lastly, Angela Merkel’s losing Germany’s Presidential Elections in October of 2017 to a anti-EU political advocate could also be catastrophic to Brussels and the European Union.

Any or all of these 2017 political outcomes turning towards Eurosceptic leadership will likely be the catalyst to the straw that breaks the Euro ‘camels back’.

 

“Markets know how to price and discount economic and financial risk, although markets are not good at pricing political uncertainty.” 

Germany’s Axel Weber, former Head of Bundesbank

Buckle up, as 2017, the volatile Year of Political Hell awaits us all.

 

Kirk D. Bostrom, Founder and Managing Partner

Strategic Preservation Partners LP ( http://sppfund.com ) is a private investment firm managing the Strategic Preservation Fund LP (The Fund), a US domiciled global special situations investment fund. The Fund offers qualified investors the opportunity to build and protect real wealth by exploiting a volatile conclusion to the Global Central Banking Bubble and credit market super cycle.

Disclaimer: The views expressed are the views of Kirk Bostrom and are subject to change at any time based on market and other conditions. This material is for informational purposes only, and is not an offer or solicitation for the purchase or sale of any security and should not be construed as such. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities. The opinions expressed herein represent the current, good faith views of the author at the time of publication and are provided for limited purposes, are not definitive investment advice, and should not be relied on as such. The information presented in this article has been developed internally and/or obtained from sources believed to be reliable; however, the author does not guarantee the accuracy, adequacy or completeness of such information.

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