Category: Financial News
There will be an important vote in Great Britain on Thursday, June 22,2016. The results of the vote will likely be known by Friday morning at the earliest. The subject of the vote is whether Great Britain should leave the European Union (EU) or whether Great Britain should remain in the EU. Billionaire George Soros recently offered his opinion on the issue.
There is a great deal of robust debate ongoing in Great Britain on the topic of whether or not Great Britain should stay in the EU. Many public personalities and political figures are coming out fervently as either “for or against.” Billionaire George Soros feels that the United Kingdom should remain as part of the European Union. He cautioned that leaving the European Union could be disastrous for the British unit of currency, the pound.
Soros pointed out that the lifestyle of the average family would be far worse than before if Great Britain votes to leave. He stated in the Guardian newspaper that problems with the pound’s valuation would be worse than the challenges that the country suffered through in the early nineties. This could cause financial turmoil that is unnecessary and would be destructive. There would be problems with exports and manufacturing and he feels that Great Britain would suffer overall.
The European Union is a group of 28 countries in the territorial and geographic region of Europe. The EU began in 1999 with the purpose of fostering free trade among its members and with the rest of the world. The various members of the EU are allowed to withdraw from the union when they vote to do so. The popular abbreviation “Brexit” refers to the possible British exit from the EU.
Billionaire George Soros is the Chairman of Soros Fund Management. Presently eighty-five years old, he is married to his third wife Tamiko Bolton and has five children. He is a noted philanthropist who has given away more than seven billion dollars. He has written many books, some of which include The Alchemy of Finance, The Crisis of Global Capitalism and Open Society.
Learn more about George Soros: http://www.nybooks.com/contributors/george-soros/
Philip Diehl, who is currently the president of US Reserve has offered his insight into the demise of the penny and its uncertain future during interview on CNBC’s Squawk Box. Mr. Diehl also debunked several myths on the penny, including the assumption that getting rid of it would increase prices and lead to a disruption of the economy. The president of US Money Reserve can be considered an expert on such matters. He has served as the director of the US Mint from 1994-2000 and was also a former US treasury chief of staff. Mr. Diehl also served on the senate finance committee where he was the majority staff director. If there is a person that can be considered an expert on the affairs of the US Mint and its coins, it is Philip Diehl as he knows the minting process, the value of currency and its affect on the economy in depth.
The interview, which took place CNBC’s Squawk Box mentions how it actually costs more money to make the penny that what it is actually worth. Mr. Diehl revealed that the penny has been costing the US Mint losses for the past 25 years now, and he believes it should be removed from circulation. He estimates that such a move would save the US government more than a hundred million dollars a year which is also impacting negetively on the US Money Reserve. The penny which is thought by many to be made out of copper, is now actually made out of 97% zinc, with the remaining 3% copper. This was done to prevent people from melting the penny down and selling the copper at higher prices.
Another critical point discussed in the interview with US Money Reserve President Philip Diehl is the idea some economists have that taking the penny out of circulation could raise prices and increase inflation. Mr. Diehl responded by saying that the effect should be minimal, and prices most likely will remain the same. “Companies” he says “Can raise or lower the price as they see fit.” The removal of the penny could actually lower prices, if prices have to be rounded. While the penny is slated to remain, it is costing more to produce than it is worth and most of its production is actually done by private companies and not the US Mint.