SOROS: “THE EURO HAS BROKEN DOWN”
George Soros presented at the INET conference this weekend and offered some very good comments on Europe. Among the important points he makes:
- The Euro is a broken currency system in its current construct.
- The peripheral nations have been rendered to 3rd world status.
- The Euro users are essentially indebted in a foreign currency.
- The political dynamic is going to destroy the Euro
- The European union is at risk of dissolution.
- The Euro doesn’t have to collapse.
- Europe needs to come together and take extraordinary actions to resolve the crisis.
Watch the full video here:
Cullen Roche
Mr. Roche is the Founder of Orcam Financial Group, LLC. Orcam is a financial services firm offering research, private advisory, institutional consulting and educational services.
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14 Comments
but…but…but…
Senior Euro politicians like Monti, Draghi and Sarcozy say the crisis is all but over? Surely we can trust their judgement instead of some evil speculator?
One very, very smart man.
Yes indeed. 20% average return for 40 years, he knows what he is talking about.
I would prefer this “evil speculator” with his wealth of skill and knowledge to the self-serving, economically illiterate, political fools that occupy much of Europe
You mean like this one…oops he’s the ECB.Makes you want to despair at the divide between reality and the place these chumps reside.
http://uk.reuters.com/article/2012/04/16/uk-ecb-asmussen-idUKBRE83E0IW20120416
Anybody know if it’s possible/how to short French govt bonds?
Eurex just made it easier for you!
http://www.eurexchange.com/resources/html/mailings/new_york/index.html
Yes, smart dude, indeed.
And maybe this is inappropriate, but I offer it up as humor.
All I could think of as I was watching that video was this:
http://www.youtube.com/watch?v=4qnr8ORs_BE
http://www.ft.com/intl/cms/s/0/7d5b5910-8555-11e1-a75a-00144feab49a.html#axzz1sBGx9xg4
“Europe needs to come together and take extraordinary actions to resolve the crisis.” New World Order speak for European nations need to give up their sovereignty to an un-needed and unaccountable “Federal” government to “save” the Euro and make billionaires like Soros even wealthier. It’s all a ruse. An expensive, deceptive, ridiculous ruse that the sheeple of Europe have bought hook line and sinker.
“The deflationary trap now being prepared” Freudian slip ?
In the 1970s the first thing they did was set up a system of fiscal transfer payments that favoured the big farmers over the small farmers.
Any poltical scientist will tell you the hardest thing to control is small farmers…………so you buy them off.
There is a dark political objective to this entire project in my opinion.
I want nothing to do with it – my country has been completly destroyed since 1987 and their EMU Frankestein experiment.
If (small countries) they fail to do so in the future this privalage or concession could be withdrawn……. somebody would have even more political power but who ?
NO NO NO
It would have been interesting if Soros contrasted the ERM crisis (of which he was a big player with money on the table) vs. now. Apparently back then, he had a lot of contacts in the UK government … politics is what decides these things.
Soros has acknowledged what John Mauldin recognized before LTRO was first implemented – that LTRO is a mechanism to re-nationalize EU Sovereign debt, and thus make the dissolution of the EuroZone a more realistic possibility. Essentially, if most Sovereign debt is held by a State’s own banks, it is easier for that State to say goodbye to the EuroZone without all its banks going under at once. It appears that the EU States are also in the earliest beginnings of re-nationalizing the other side of the ledger as well, by forcing their citizens to repatriate their bank deposits. Cullen, do you have any idea how much more LTRO the ECB will have to do in order to make a breakup of the EuroZone tractable? What would you say is the timetable for a EuroZone dissolution?
Fascinating analysis, if accurate. I also would be interested in Cullen’s take on it.