"I wonder what's next for the EU? Complete political and fiscal union? In my second year of Fullermoney, listen to the audio everyday and read every article, I have even made a couple of contributions which were published."
"My view from a novice investor's point of view in the last 2 years:- last year round about August-October made money on silver/cotton and gold, unfortunately stayed in too long and got burned in November. This year the only thing I have tried so far is the 30 T bond, shorting it to no success, I've been in cash all year and am still waiting for a decent opportunity. The only asset class that appeals is gold at present from a spread-betting point of view, I have a separate portfolio of shares which include a number of Fullermoney themes. I'm still waiting for that sweet spot and [Ed. If?] we don't end up with bartering , famine and war!"
Eoin Treacy's view Thank you for this account which I'm sure will be of interest to other subscribers. The short answer to your question is yes. Fiscal union is by the far the most likely scenario at this stage. The ratification of the EFSF deal by the constituent governments in September will create a new institution capable of issuing debt; backed by the capability of all Eurozone members to tax their citizens. The new institution will also be able to purchase troubled country specific debt in the secondary market.
It could be argued that a form of political union is already in place with the European parliament, Commission and council of ministers. Those opposed to fiscal union have a short window of six weeks in which to make their case.
Every major stock market decline presents opportunities, particularly for sectors caught up by contagion but which do not in fact have any exposure to the problem sector. Many emerging markets, utilities, cash rich multi-nationals and high dividend paying MLP in the energy sector have no exposure to the Eurozone sovereign debt crisis.