Woe is Europe – Watch What Happens When Lawyers & Socialists Rule

Europe-Separatist Movement

QUESTION:

Hi,

Your call on this has been absolutely and impressively correct. You have said that  the Dollar is going to ‘vertigo and that the Euro is dead”. Is it possible to give us some idea of what you mean by this please?

As always, thanks.

ANSWER: Here is the chart I displayed at the Berlin Conference. That is where I delivered the forecast that Greece would leave the Euro. I find it just amazing how a simple concept of understanding what a floating exchange rate system truly means appears to be beyond the understanding of politicians and most people.

If I lend you gold at $300 and ounce and you sell it to use the cash but ultimately must replay me in gold when gold rises to $1200, you now must spend 4x the amount of dollars to repay me with gold. This is how the floating exchange rate system operates and is WHY the Euro will crash and burn.

The committee to create the Euro attended my London World Economic Conference back in 1997. I explained that the Euro would fail if the debt was not consolidated. WHY? Because the outstanding debt of Greece ROSE in value under the Euro and for Greece to pay off its old debt meant that it was strip-mining its domestic economy. Just like the gold example, the Euro created DEFLATION on a grand scale.

The Euro cannot function in that deflationary manner. Once we see the Euro break the 11640 level on a weekly, monthly and yearly closing basis, it is good night Irine. We will see Europe continue to battle against the rising separatist movements and once Greece leaves, the capital markets will turn against the next round of players.

Because analysis in Europe at the banks and institutions MUST be POLITICALLY CORRECT rather than economically correct, there is little hope of reform. Brussels will cling to their jobs until the last drop of blood is drained from the people.  The idea that one currency and one government would prevent war, will only prove to be the catalyst for war. Europe is doomed without a reversal in political trend. Woe is Europe – Watch What Happens When Lawyers & Socialists Rule.