By Nick Giambruno
Editor's note: Today we have an urgent essay to share with you from Crisis Investing editor Nick Giambruno. You see, right now, a dangerous shift is playing out in Europe… one that could change the continent's political landscape in a way not seen since before World War II.
As Nick explains below, it all has to do with tomorrow's important vote. Read on to get the details on how it will all go down—and what it could mean for you and your fellow Americans…
Tomorrow, a vote in the Netherlands could push the euro and the EU one step closer to death…
For the last several months, I’ve been warning readers about a populist tsunami washing through Europe. It’s drastically changing the continent’s political landscape in a way not seen since before World War II.
This wave is flushing away traditional “mainstream” parties. And it’s bringing in anti-establishment populists who want to leave the euro currency and the European Union.
It’s already hit the UK in the form of Brexit, killing David Cameron’s pro-EU government in the process.
Then it struck Italy, washing away pro-EU Matteo Renzi’s government.
After spending a few weeks in Italy last year, months in advance, I predicted the country’s constitutional referendum would fail and Renzi would resign. (I’m also an Italian citizen.)
That’s why I advised Crisis Investing subscribers to short the euro with an investment that trades like any ordinary U.S. stock. As of writing, we’re sitting on a double-digit gain, but I expect there’s a lot more upside in the months ahead.
Tomorrow, on March 15, the populist wave is set to hit the Netherlands.
That’s when Dutch voters go to the polls. The anti-EU populist Party for Freedom is expected to win. It’s led by Geert Wilders, who was close to Trump’s campaign. Some even call him the “Dutch Trump.”
Leaving the euro is a top priority for the Party for Freedom. If it wins, it would be another nail in the coffin for the European currency.
Either way, the Dutch parliament will discuss how to leave the eurozone shortly after the March 15 election.
A top lawmaker recently said that “the probe will examine whether it would be possible for the Dutch to withdraw from the single currency, and if so how,” Reuters reported.
The euro’s problems are compounding and could get much worse, very soon.
Two of Europe’s biggest countries have elections this year:
France (April 23)
Germany (September 24)
These elections will ultimately determine the fate of the European Union.
The Brexit vote, Donald Trump’s election, and the failure of Italy’s constitutional referendum have already boosted anti-euro populist parties in these countries. If the Party for Freedom wins in the Netherlands tomorrow, they’ll get another leg up.
Populist parties have a real chance to win in both France and Germany. But even if they win in just one, the EU would likely unravel.
The biggest issue in these elections is the migrant crisis, which we’ve covered here extensively. And the crisis is only accelerating.
Every single migrant that arrives in Europe increases the chance that anti-EU populists will win a key election. That’s not good news for the EU or the euro. It’s also not good news for the U.S.
Whatever happens in the EU—the world’s largest economy and a major U.S. trading partner—matters. If the euro collapses, expect it to trigger a stock market collapse in the U.S.
The Financial Times recently put it this way:
It would probably lead to the most violent economic shock in history, dwarfing the Lehman Brothers bankruptcy in 2008 and the 1929 Wall Street crash.
And it could all begin unfolding tomorrow…
Editor, Crisis Investing
P.S. Tomorrow, March 15, is a crucially important date for Americans, too. Especially those who have any money in the stock market.
Because on that day, the debt ceiling deadline hits. If Congress can’t come together to agree on a solution, the Treasury could run out of money. In the worst case, this could affect Social Security and government pension funding. Also, the last time the debt ceiling battle got fierce, the U.S. credit rating was downgraded. If that happens again, there could be big trouble in the markets.
On top of the debt ceiling deadline, the Federal Open Market Committee (FOMC) will meet tomorrow—and all signs are pointing to a rise in interest rates. A steep series of rate increases could also spell doom for the market.