by James Rickards
Daily Reckoning
I do not believe that Brexit means that the European Union is going to break up. Or that it spells the end of the euro as a currency. I’ve been very bullish on Europe and the Euro in the past. Even if the currency fluctuates, all these currencies are fluctuating, and the Euro did trade down from around the 140 level in late 2013, all the way down to 105 in January 2015, and people said, “Oh, it’s going to parity.” I said, “No, it’s not going to parity,” and it didn’t. It bounced back to 105 a couple times, back up around 110 today, $1.10.
Now the important thing to understand is the European Union is not primarily an economic project. Does it have a lot of economic problems? Absolutely, from Greece to Portugal, now Italian banks, et cetera, but it is a political project.