Posted Nov 12, 2012 by Martin Armstrong
The Berlin World Economic Conference December 1st & 2nd is shaping up to be a major event. Our focus will be the Euro and since we warned that the Euro monetary system was unsustainable as designed and the European Commission even attended our World Economic Conference in London to listen to our warnings, the pressure is clearly building for it is now the fate of Europe and the world that lies in the balance.
“The theory that creating a single currency for Europe will solve all the problems is by no means the answer. It will not solve the vast disparities between the economies of Europe but in fact will be a means of exporting deflationary policies at work in Germany to other nations such as Britain and Greece. What EMU must be about is more than a single currency. While a single currency will ease some risk problems for business associated with currency, it poses significant dangers that would breed resentment between member states by exporting German economic policy to the rest of Europe. This is the similar problem whereby the dollar is the reserve currency and this results in the United States exporting its inflationary policies to the rest of the world caused by the lack of fiscal restraint.“