When it comes to identifying and evaluating the key vulnerabilities and inherent risks of the banking and financial system, there are few who have the insights and practical experience that is required to truly understand the scale of the issue and its investing implications. This is precisely why I turned to Dr. Markus Krall, who graciously agreed to share his thoughts and observations, as well as his outlook on the future of the financial system and the economy
He is also the author of two bestselling books on economics, monetary policy and geopolitics: “The Draghi-Crash” and “When Black Swans Multiply”. Additionally, he is a regular columnist for several of Germany’s leading print and online publications where he focuses on monetary policy and European affairs. Finally, as a knight of the papal order of the Holy Sepulchre, he is engaged in humanitarian work and foundations in the Middle East.
When the Euro was introduced and for a number of years, I did not perceive the common currency to be the problem and time bomb it later turned out to be.
When the Euro was introduced in 1999, I mainly perceived it as an opportunity to reduce the transaction costs of intra-European trade and therefore a good thing. My awareness of the inescapable tensions a fixed exchange rate regime would introduce to a severely suboptimal currency area, which the Eurozone resembles, was underdeveloped to put it mildly. Also, back in the 90’s, I did view the EU and the integration it was driving as a force of free trade and thus believed it to be a good thing.