Raleigh, NC (PressExposure) February 03, 2012 -- The European Union is coming very close to fragmenting, according to Peter Leeds, author of "Invest in Penny Stocks," leading speaker on the best penny stocks and stock market tactics, and publisher of the world famous Peter Leeds penny stock newsletter. Leeds cites debts that mathematically can not be paid, spreading European economic weakness, and punishing austerity measures as triggers to induce several of the 27 member nations to return to their endemic currencies.
According to the BBC, Greece has a debt of $400 billion but a GDP of only $200 billion. Italy has a debt of $2 trillion but a GDP of only $1.2 trillion. Spain is in even worse shape, with $1.9 trillion in debt, and a GDP of $700 billion.
"These debts can not be paid," says Leeds. "On March 20th Greece needs to come up with $14.4 billion dollars to pay back bond holders... that's $14.4 billion they don't have."
Much of Leeds' penny stock research involves macro-economic analysis, because global events will impact stocks and penny stocks here at home. The most important aspect of penny stock research is derived from predicting how world issues will impact penny stocks and penny stock industry sectors. He claims that knowing which events will increase prices of specific penny stock shares, or be beneficial to specific penny stock business types, can be very profitable.
As seen on BBC and CNN, massive austerity measures have been imposed on the populations of many of these troubled nations, to bring in more revenues while cutting expenses. New property taxes, raising the retirement age, and fewer deductions are just some of the new tactics being imposed on the people that have now led to massive nationwide strikes, protests and marches, and even riots.
Leeds also suggests that leaving the Euro behind, and returning to their former currency would be beneficial to most of these nations in fiscal trouble. By defaulting on their debts, they would unburden themselves from their financial obligations, clearing the way to begin rebuilding.
"Every day, the debt problems get worse," adds Leeds. "There is no way to get out of this mess, so it's just a matter of how long it can be delayed. Maybe six months, maybe two years, but the day of reckoning is approaching.
About Peter Leeds: The leading speaker on penny stocks to buy and speculative stock market investments, Leeds is also the author of "Invest in Penny Stocks," and editor or the world famous Peter Leeds penny stocks newsletter. He has spoken before the American Stock Exchange, written for Forbes, and been featured by top media. He has also led penny stock panels at Manhattan's prestigious Arch Investment Conferences and the International Money Show.