There is no question Europe has been struggling.
In fact, the eurozone’s growth over the past year reached a paltry 1.6%. What’s even more depressing is that this number is twice the average growth rate from the previous ten years.
So, with anemic economic growth and with a debt crisis starting to bubble up to the surface, could 2017 finally be the year we see the euro collapse?
I certainly think it’s possible. And if not this year, by 2020 for sure.
And the fact is I’ve been warning of this since all the way back in 1998 — before the euro even got off the ground — when I told everyone that the currency wouldn’t last. And last week, I wrote about the impending doom of the European Union.
Here’s why the euro is going down …
Sluggish economic growth and mounting debt have left many countries in the eurozone on the brink of economic and political collapse.
Greece is already bankrupt. And the Greeks aren’t making much progress on their current bailout review while they refuse to accept more austerity measures. Furthermore, Italy’s banks are on the brink of collapse.
Portugal’s banks are not much better.
And because of the higher levels of debt and unemployment — and the increased political discontent across the eurozone — the next crisis could be right around the corner.
Sentiment in Italy is turning very anti-euro, and this view is beginning to emerge in other eurozone states.
And if Italy leaves the EU, the fallout could be far worse than what we saw with Brexit. Unlike Britain, Italy actually uses the euro, and its exit could pave the way for other European countries to follow them out of the EU.
And it’s not just Italy: Elections in France and the Netherlands could also undermine the euro.
The authoritarian attempt to rule Europe by the leaders in Brussels is leading to the demise of the euro. And much faster than one might think.
Adding fuel to the fire: The insane management of austerity and negative interest rates from Brussels.
Even Professor Ted Malloch, President Trump’s expected pick to the be the ambassador to the EU, agrees. He was recently quoted as saying, “The euro’s days could be numbered. A collapse of the single currency is possible in the next 18 months.”
The motivation for creating a single currency was to bring greater prosperity to Europe.
But, in the end, the euro was a political project. And the politics weren’t strong enough to create the institutional arrangements needed to ensure its success.
Now, the euro’s future depends on massive political uncertainties. And without major political and economic reform in Europe, the euro is doomed.
Best wishes, as always …
Larry
Jim M February 11, 2017
Larry, you are forecasting a collapse of the Euro and a surge in the dollar. With the Euro tanking, even breaking up, why wouldn’t gold and silver prices rise despite the dollar going up?
Felix February 4, 2017
Is the Euro backed by 20% gold? Would that avoid a complete collapse?
BC in Europe February 1, 2017
You’re not the only one predicting this collapse, Larry. Even Super Mario Draghi himself is talking about it. You’ll never hear or read this in the MSM though.
http://www.globalresearch.ca/crisis-of-eu-banking-break-up-of-the-european-union-eu-ecb-head-mario-draghi/5571969
Vasco Garcia February 1, 2017
I hear this “prophecies” since I was an MEP and a member of the European Parliament/US Congress Delegation, in the early 90s. Sure, the EU faces debts and hard times. And the US? And the world, indebted from top to bottom?!
P J Raadsen February 1, 2017
A small correction and addition on my yesterday’s comment:
2016 GDP growth:
UK 2,0 %
EU 1,8 %
USA 1,6 %.
Bur for most people including the main press, reading only the headlines of official publications and not studying the subsequent US data adjustments (because it concerns former periods) these data will be hard to believe.
Lynn January 31, 2017
The motivation to create a single currency was not to bring greater prosperity to Europe, but to rape and pillage it by the New World Order or the Global Elites. That is the reason why they will fail, because of their greed. They will not succeed. And they will not succeed in conquering the world or putting the world under one world government. God will not allow it!
NICK CLIFFORD January 31, 2017
Larry, how will this affect the British pound ?
P J Raadsen January 31, 2017
Let’s try to keep things in perspective.
Last week the 2016 GDP growth figure was published…….the same paltry 1, 6 % .
Have you forgotten that the national debt per capita in the USA is 26 % bigger than the one of Greece?
And that the US $ would already have gone down the drain if it was not supported by daily interventions, because
even economists are convinced that it is impossible to ever pay back the US national debt.
It is certainly possible that the Euro collapses but -if a free market of $ supply and demand is ever restored- it could just as well be the $ that collapses first.
P. J. Raadsen
Aksel Willumsen January 31, 2017
I am sorry to say that you are rigthl
Aksel Willumsen
gerhard January 30, 2017
Larry what happens to the Euro if Italy and or France leave the union.
How do they get their Lira/franc back at their fair value .Great Britan does not have a problem on that end .
Greg Schmitt January 30, 2017
I have a question about the entire Euro going down thing. I am not heavily short in EUR-USD but short nonetheless. I have read most of your commentary about the topic and agree it is a fragile system at best. My question is what would happen to that position should the Euro go away tomorrow?
It would be nice to read some comments about this specific topic.
Dan Williams January 30, 2017
Like you,from the very beginning I warned about the pitfalls of a shared currency–the concept only works if nobody cheats.When even one country starts overprinting/overspending,they are basically trying to steal from all the others–as you say, we are now seeing the inevitable result.
Michael Carton January 30, 2017
Illinois is almost bankrupt, Louisiana has been bankrupt more than once in its history. New York City has passed through bankruptcy in the 1970s & and California municipalities are unable to pay their pension obligations, and hundreds of banks collapsed as recently as the 1990s but the US$ has not “exploded”. In Europe a complete generation has grown up in France, Germany, Spain, Italy using only the Euro. This generation does not know what is a Mark, Peseta, Franc, Lire.
For those older Europeans who do know what was a Franc, Peseta, Kroner, will this older generation voluntarily destroy the purchasing power of their retirement savings by exchanging a Euro( linked to Germany) with a re-launched Franc, Peseta, Kroner?
While debt default is probable & the value of the Euro will fall below $1, but why should the Euro as a currency “explode” while the US$ would not?
A currency is not only the construct of authoritarian politicians, but also the construct of habit by millions of people who know no other means of value.
Scott Hartzler January 30, 2017
Thanks Larry. I’ve been watching the Euro and it’s inevitable demise.
Jas January 30, 2017
How’s this all gonna effect the sub prime mortgage and the issueing of collateralized debt obligations? Are the millenials gonna be the generation of negative equity?
BC in Europe February 1, 2017
Here is food for thought, Jas:
If the American (or in this case, the European) people ever let private banks to control the issuance of their currency, first by inflation, then by deflation, their children and grandchildren will wake up homeless and destitute on the continent their forefathers conquered.
– Thomas Jefferson –
Ronald Hall January 30, 2017
thanks for your insight here Larry. I have a small stash of euro’s in anticipation of my next trip. what will the redemption of euros play out if you are right and the value collapses?