Former Fed Chair Warns Euro Could Collapse

Euro Could CollapseGold to the Rescue?
Alan Greenspan has spent an entire career repudiating sacred economic beliefs and trends. In a startlingly candid interview in The World Gold Council’s February issue of Gold Investor, the former head of the Federal Reserve expresses profound concerns about the viability of the euro currency, and of the European Union (EU) at large.
According to Greenspan, the European Union simply isn’t working. The crisis, as he sees it, stems from an economic divide between the more prosperous northern EU member countries and those in the south. The northern member countries are subsiding the deficits of their southern counterparts.
Greenspan has long felt that the dissolution of the EU is inevitable because of the widely under-estimated differences in its member countries’ economies and cultures. Under the circumstances, Greenspan views the euro itself as being doomed.
And for all the European Central Bank’s (ECB’s) valiant bail-out efforts, the financial problems with Greece’s debts have still not been resolved. The countries’ banks are once more facing bank runs. Also, bankruptcy for Italy’s Banca Monte dei Paschi di Siena, Europe’s oldest bank, is now imminent. What’s more, Germany’s largest lender Deutsche Bank is being dogged by non-performing loans (NPLs).
Ireland, Spain, and Portugal are plagued too with economic challenges, and given the severity of their respective financial crises, many doubt there’s relief in sight for these weaker euro nations. Furthermore, Greenspan predicts that Brexit will ultimately set off a collapse of the European Central Bank, even though the UK never adopted the euro in the first place.
Alan Greenspan believes we should return to gold as a currency. And for a long time, he has advocated a return to a universal gold standard. It’s also fair to say that he believes, had the EU managed to adopt a gold standard, it never would have found itself in its current dire straits. In his recent interview with Gold Investor, here is some of what he had to say:

“I view gold as the primary global currency. It is the only currency, along with silver, that does not require a counterparty signature …. No one refuses gold as payment to discharge an obligation. Credit instruments and fiat currency depend on the credit worthiness of a counterparty...Significant increases in inflation will ultimately increase the price of gold. Investment in gold now is insurance."

As he surveys the world’s economies, Greenspan finds it difficult to find one that’s “solid,” and, under the circumstances, a central bank whose reaction he can predict.
He doesn’t exactly paint a comforting world economic picture, does he? Through the entire mess, though, he foresees a semblance of security for investors who gravitate toward gold. It is the one ultimate currency.
Now take a close look at your own finances. Can you appreciate why you might ultimately need “insurance” for your retirement account – the account you worked so hard to build and protect year after year?
Request more information now or call 800-777-6177 now, and ask to speak to a Fortress Gold Group representative.

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