Many analysts and European political leaders are only now digesting the ramifications of Thursday's move by Switzerland to de-peg their currency from your Euro, and just what it means in the years ahead for the remainder of Europe containing now seen one central bank refusing to go lock-step with all the ECB in their wish to have a program of Quantitative Easing. But while nations like Germany, Britain, and France have a long critical look at being required to endure an environment of massive money printing, over in Russia these are seeing this turmoil as a chance to use this financial meltdown to place a crack inside the EU coalition as on Jan. 16 the Eurasian power offered the beleaguered nation of Greece a method out of their own financial straits whenever they voluntarily leave the EU and sign on using the new Eurasian Economic Union.
Greece, together with a number of other European countries known inside the financial world because PIIGS (Portugal, Iceland, Ireland, Greece, and Spain), have been in the centre with the financial conditions have plagued the European Union because the credit crisis of 2008. And despite numerous bailouts with the ECB and IMF during the last 5yrs, Greece still remains having problems which has a debt to GDP ratio close to 200%.
Interestingly enough, why this offer incredibly enticing for Greece is due to a closed meeting that came about on Friday involving the head with the European Central Bank and leaders in Germany where discussion over a quantitative easing and bond buying program from the ECB wouldn't include bonds or toxic assets from Greece. This of course could leave the Southern European nation unchanged, with financial problems that have become leading citizens get more info to get familiar with numerous bank runs within the last several days.
Economic sanctions by the U.S. against Russia are coming up with plenty of collateral damage in Europe, with layoffs and shutdowns occurring in industries like agriculture. Additionally, Germany's powerful business union has put immense pressure upon Chancellor Angela Merkel to deal using the ongoing sanctions since between 3000 and 5000 German businesses happen to be strongly affected by Russia's retaliatory actions provided to European imports.
As the Swiss central bank proved on Thursday, nations are quickly dissolving to the point where it is every country for itself, using this crack in what had been a great unity providing opportunities for a country like Russia to provide fuel towards the fire and potentially accelerate the breakup of the EU coalition. And if Greece for the off chance finds this offer by Russia amenable, a full breakup in the EU is in play, and might also lead to detrimental effects against America since the breakup of NATO and also the dollar too become real and viable options.