Monday, August 23, 2010

Prophet of the euro crash

Brendan Brown predicts the euro crash.
He is the author of “Euro Crash: The Implications of Monetary Failure in Europe” and is chief economist at Mitsubishi UFJ Securities International Plc.:
"The growing failure of European monetary union can’t be measured by superficial yardsticks such as the number of tiny euro-area economies at risk of meltdown or of monthly turbulence in currency markets. The main development has been the dashing of hopes for monetary stability.
The euro crisis isn’t over and confidence in the European Central Bank has faded. The ECB now presides over a bloated balance sheet that has expanded to about 2 trillion euros ($2.54 trillion) from 1.084 trillion in June 2006 and camouflages the massive creation of monetary reserves..."
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Comment: The problem is: against which currency would the euro crash? The US dollar? Yen? For one currency to go down another currency must go up. I should be glad to move some of my euros to a safe place (other than gold), but I still haven't found it among other currencies.

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