Armstrong Economics Blog/Euro €
Re-Posted Oct 29, 2018 by Martin Armstrong
We ABSOLUTELY must understand that Merkel is on her way out and she has been the face of the entire European Union. This is incredibly important for it WILL ultimately undermine the Euro itself. Keep in mind that the entire play within Euroland has been to buy the Bunds and sell just about everything else. The primary reason has been the prevailing view that if the Euro collapses, then owning German bonds means you will get back Deutschmarks.
After the Hesse elections, German politics is like watching paint dry. We know the end result, it is just painfully slow to get there because it just takes time. Angela Merkel has told her CDU party that she will not run for re-election as its chairwoman in December, sources say. She was really forced into that position after her party has suffered heavy losses in regional elections that threatened the stability of the governing coalition. Merkel has been the chairperson of the CDU since 2000, becoming one of its longest-serving chairpersons in German history. Nonetheless, she has led Germany as chancellor since 2005 and will not resign without, according to inside sources in Germany, being dragged out by her hair are very real. She has tasted power and that is very hard to walk away from. In her case, that power is virtually being the head of Europe as a whole to the international world.
This is incredibly important because undermining the Euro is what our computer is warning about and that can drive the dollar to all-time record highs breaking the back of the entire world monetary system. Curiously enough, December has been shaping up as a major turning point on the Arrays. We may have just got the explanation why.