It seems like the continuous rumblings of discontent in Europe have become increasingly and all too common lately. Aside from huge unhappiness with the European Union and Eurozone in both Italy and Greece, you now have new serious challenges to the neo-liberal order of Europe in three member state leaders of the Czech Republic, Poland, and Hungary.
Any of the three and in particular all of them together represent a powerful alliance easily capable of fracturing Europe at a time when it is still reeling from Brexit and the slow motion train wreck separation that it represents for the common market union and would-be super state trading block.
They are each reasons for why you need to line your portfolio with gold and the other precious metals. The potential break up of the Eurozone or even the entire EU is plenty of explanation for why you need a gold IRA. Time to brush up on how to invest in gold.
Czech Republic Set to Elect New Trump-Styled Billionaire Populist Prime Minister
The last thing Europe can afford right now is to see the Trump phenomenon repeated anywhere in the EU. Yet this is exactly what looks set to happen in Prague later this month. It is the latest symbol of the growing rupture between the old EU heartland of Western Europe which Merkel and Macron represent and hope to lead to closer integration and the newer EU member states of Eastern Europe which especially the Czech Republic, Poland, and Hungary lead with their ideas of increased national sovereignty and local political autonomy.
It is hard to see how billionaire Andrej Babis, the populist rising star of the Czech Republic, loses his country’s national election this month when Czechs go to the polls. He represents the anti-EU attitude so prevalent in Prague these days. A Slovakian immigrant himself, Babis is more than welcoming to immigrants from the Ukraine for example.
With his popular promises to send the unwanted Arab immigrants home packing and to forge a government that operates efficiently like his highly successful businesses do, the man also respects the judicial branch and still welcomes traditional Eastern European and Russian immigrants to the country (so long as they come from the traditional Judaeo-Christian background which most Czechs embrace).
Yet Babis is clearly and staunchly against any additional bureaucratic European meddling in local Eastern European affairs and especially the European integration championed by Emmanuel Macron and his strongest ally Angela Merkel. It means that Babis is lumped in with his less savvy Eastern European contemporaries in Poland and Hungary despite the fact that his version of populism is far more tempered and less authoritarian than his two colleagues.
Poland’s Kaczynski Hostile to the EU Across the Board
Kacyzynski is somewhat of an enigma in Poland. Technically he is neither the Premier or President (jobs he astutely delegated to other yes-men in his party), yet he runs the right-wing leaning Law & Justice Party. He is the constant thorn in Angela Merkel’s side as her most vocal critic, particularly on the topic of immigration. Kacyzynski styles himself as permanently and personally at war with the European Union.
This means that he wages war on such groups as the EU institutions, particularly since Brexit. He has called repeatedly since then for national powers to come home from Brussels. Kacyzynski also has battled against Donald Tusk (the former Polish leader) becoming European Council President. The EU is similarly fighting back against him by investigating his Law & Justice Party and its judicial branch reforms.
The EU despises his constant interference with the freedoms of the press. They might easily decide to trigger Article 7 and suspend the Poles’ voting rights within the European Council. This would be especially awkward with the European Council President being the former Polish leader.
Hungary’s Victor Orban Completes the Trifecta Anti-EU Eastern European Alliance
Kacyzynski’s hero and role model is neighboring leader of Hungary Victor Orban. In fact the Polish de fact leader has boasted before that he would forge Warsaw into a new Budapest. Yet Orban who completes the trifecta of anti-EU leadership in newer member states of Eastern Europe proves to be more subtle and diplomatic. Long an anti-Soviet Union firebrand himself, Orban has also been accused by the old Europe of mud-slinging at his opponents such as the European Union and reeling in the judicial branch in Hungary.
Presently the government of Orban is passing around a cartoon propaganda piece known as the “Soros Plan.” This alleged plot has the EU carrying out the Hungarian born financial mogul George Soros’ plans to pay immigrants to come settle in Europe while simultaneously tearing down the anti-immigrant border walls and fences of Hungary. Orban remains extremely popular with his countrymen and is projected to handily win the Hungarian elections slated for next year.
Orban epitomizes the facts for each of the three disrupting Eastern European anti-EU leaders. They are wildly popular in their home countries. Each of them plays to the innate feelings of Eastern Europeans who plainly do not wish to suffer any Syrian refugees as their neighbors. This sentiment in Eastern Germany recently led to the AfD anti-EU party winning seats in the Bundestag for the first time since the end of the Second World War.
Yet the three economies are strong and growing (as the chart above demonstrates for Hungary), which leads many business leaders and analysts throughout Europe to question how far they will actually carry their personal crusades against the EU. Babis in the the Czech Republic is well aware that if he held a referendum tomorrow in Prague, his people would heartily elect to leave the EU.
Analysts question if the Czechs would be crazy enough to leave the Union. For a country of their significantly samller size, it would not go even as well as the fumbling Brexit is so far progressing. This case study of infighting between London and Brussels is giving the three leaders pause for thought about any hard break with Brussels.
Possibility Exists for Two Heads of Government to Clash Blowing Apart the Still-Reeling EU
There are two powerful leaders in Europe who are most likely to be at odds in their core view points on the future direction and policies of the European Union. Newly elected French President Macron is the first. He has long campaigned against the block choosing to ignore political goings-on in Hungary and Poland. He claimed in the past he would aim for sanctions especially on Poland for breaking EU rules and sacrificing the block’s core values at the same time as they used the union to grow and strengthen economically.
The French people would practically cheer if the block delegated less (or even no) money to Budapest and restricted Polish plumbers from taking away jobs in France. It is Macron’s ambitious and controversial plans to better integrate the EU built around the Eurozone that simply enrage the Eastern European nations and their leaders who exist without the single currency block.
The second larger than life clashing personality proves to be Poland’s Kacyzynsksi. The man obsessed with the tragic history of Poland is radically against any ideas that would boost the powers in Brussels or which would widen the gap between the haves and have-not’s of the euro currency block.
Possible Rupture of the EU Looks Increasingly Likely
The real question is will Macron succeed in pushing for harsher punishments from the EU against the offending Eastern European EU member states? You also need to wonder about the odds of Poland sinking the dreamed of further Western European EU integration ambitions.
Some analysts claim that Europe will not suffer yet another devastating division, yet these same people formerly ruled out a “Yes” vote in Brexit. The business community should pay more attention to these frightening and very real prospects.
You should too. Gold is the insurance that will safeguard your portfolio for a blow up of the single currency or the EU club itself. What Germany and Kyrgyzstan know can protect your retirement portfolio. Gold protects against instability in times of market chaos. This is why you should own gold in times of financial crisis. Consider what gold in an IRA now while you still have the time.