world economics

30 May

london 8.50pm 19.7C sunny wednesday 2018

we here in uk all know about the italians  unable to form a govt , when their candidate for finance minister , a known anti Euro economist was rejected by the president of italy who refused to accept his nomination, and so it seems they have to have another election later in july. it is causing some turmoil in italy with the money markets getting into a fright about it. it means italy will find it more expensive to borrow money. 

but i see just now the headline saying the turkey lira is falling, and that will bring about a banking crisis in europe, because so many european banks have lent money to turkey. with the falling turkey lira, they wont be able to pay the interest which is in US $. and if they go into default, than the european banks who have lent them the money will suffer.

i have to admit i cannot understand world economics. but the domino effect is what caused the collapse, and if u can figure out which domino is the important one, you can make money by predicting what will happen. will this cause a banking crisis in the eurozone and will it become the one that cause all of it to collapse? i wonder. perhaps not, because turkey is not a big player. the papers are more inclined to believe that the crisis will come from italy. it is 5.93turkish lira =£1.

added. 2.6.18 £1= 6.21turkish lira. $1= 4.61TL

 

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