The problem with the European Union

Episode 191:  The European Union has a severe structural problem whether the UK exits or remains.

The EU could be a successful trade organization (like NAFTA) if it did not use a single currency.  Theoretically the single currency is appealing because Germany benefits due to a comparative weak currency (thus its exports are “cheaper”) and southern countries (Italy, Spain, etc) benefit from a stronger currency (cheaper imports and lower interest rates).

In practice, the system doesn’t work because it defies market principles.  Germany’s economy grows while southern countries fall deeper into a debt death spiral.

Like a loan shark, the system works as long as Germany is prepared to finance its insolvent customers.


10 Wealth Building Principles:

Full archives are available at:


Subscribe to the Wealthsteading Podcast:

via iTunes:


Hosted by John Pugliano. The Wealthsteading Podcast provides stock market commentary and investment insight based on 10 simple wealth building principles.

For more information visit us at: or

Copyright © 2016 Investable Wealth, LLC. All rights reserved. This podcast is for informational purposes only and is not intended to be a solicitation, offering advice or recommendation of any security. This podcast does not intend to provide investment, tax or legal advice. The content is strictly the observations and opinions of Investable Wealth, LLC. The information in this podcast is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation. Investable Wealth, LLC is an investment advisory firm licensed in the State of Utah.


UNSUBSCRIBE from this update by replying with the phrase: UNSUBSCRIBE