Is the British exit from the European Union beginning to the destruction of the euro – Thousands of years human without an intervention of computers valued their own currency and business exchanges was based on the goods with the product or goods to services. However, the concept of “money” takes the world to the challenges! Do you find yourself wondering why should determine the value of the one country currency with traders who do not have anything to do with that country! For example, if American banks want to they can easily challenge value currency such as Pound, euro or any others!
In many cases money battle is unfair. The global financial system situation in its present are at the peak of the financial system’s and dependence on digital technology and communications, I mean that is a big change and turning point is on the way. If Britain exit of Europe Union; to be sure, other powerful countries like Germany, France and Italy are certainly thinking of leaving it and this will lead to the destruction of currency called the euro.
The gap in Europe has two main aspects:
1- Separation due to losses incurred by other Member.
2- The issue of terrorism will be less likely with the separation of Europe. (Travel freely is high an advantage to the terrorists).
Destruction of currency called the euro will be beginning of the international community to distrust for the definition of the money!
This will have serious consequences which are summarized as follows:
- People rushing to the banks to withdraw money from banks and this causes a dangerous financial crisis.
- Volatility in the financial markets and the bankruptcy of numerous companies and banks.
- The possibility of closing the online exchange market for uncertain times and the confusion merchants for transactions.
- The increasing tendency of countries for the exchange of goods with the goods.
- Increased desire for a change of exchange values from the concept of “money” to the new concept and more stable.
Now here’s a question!
What will people invest in the confusing situation? In this case, the answer is largely determined,usually, memory and history have shown that precious metals and the base currencies are a good support. For example, if the destruction of various currencies happens, the American dollar that will be last money will challenge.
With this interpretation once again, the precious metals markets and American dollars will increase in value. Although will not last long the kingship of gold anymore and the financial markets will need another definition for value and this is likely to support the concept of the new money will be technological.
Author: Dr. Iman Jabari
Tags : American dollars British exit Europe European Union Forex Market Analysis France global financial system