SOROS: THE EURO IS A FLAWED CONSTRUCT
George Soros is towing the TPC line with regards to the Euro. He believes the currency is a “flawed construct”. Speaking in Europe today he was very critical of the German government and said that they are dragging the rest of Europe into a deflationary spiral.
“Right now the Germans are dragging their neighbours into deflation, which threatens a long phase of stagnation. And that leads to nationalism, social unrest and xenophobia. Democracy itself could be at risk…By cutting its budget deficit and resisting a rise in wages to compensate for the decline in the purchasing power of the euro, Germany is actually making it more difficult for the other countries to regain competitiveness.”
Soros is exactly right. And the man who broke the bank of England (and made $1 billion in a day) knows a thing or two about currency systems. The Euro crisis is far from over and may in fact only just be starting.
Read more on the Soros comments here.
“By cutting its budget deficit and resisting a rise in wages to compensate for the decline in the purchasing power of the euro, Germany is actually making it more difficult for the other countries to regain competitiveness.” George Soros
Could you spell this out TPC? Does it mean German workers need a pay raise to buy goods from other Euro zone countries so as to lift them out of recession?
TPC,
Whilst slightly off topic, does this market concern you at present?
The negative data is piling up like rubbish in the backyard, and the garbage truck doesnt come to collect it anymore as the local council can’t afford it anymore. Eventually it’s going to start to stink real bad…
Just finished an excellent book which I highly recommend:
Lords of Finance: 1929, the Great Depression, and the Bankers Who Broke the World,
It is extremely relevant today in general and in particular with regards to the gold standard ( Euro )
http://www.amazon.co.uk/gp/product/009949308X/ref=s9_simh_gw_p14_i2?pf_rd_m=A3P5ROKL5A1OLE&pf_rd_s=center-2&pf_rd_r=0ZYPW2K2EKB6V53X0XS3&pf_rd_t=101&pf_rd_p=467128533&pf_rd_i=468294
Mr Soros said in your link: “Germany is globally isolated … Why don’t they let their salaries rise”
Mr. Soros just demontsrates that he is completely uninformed about german and european economy. It is not the government which fixes salaries. Salaries are negotiated freely betweenhe employer and employee like in the US. Nobody can let salaries rise in germany.
What a foolish nonsense *giggel*.