by Mark O’Byrne, GoldCore:
2017 could be the year that the euro collapses according to Joseph Stiglitz writing in Fortune magazine and these concerns were echoed over the weekend by former Bundesbank vice-president and senior European Central Bank official, Jürgen Stark, when he said that the ‘destruction’ of the Eurozone may be necessary if countries are to thrive again.
Stark and Stiglitz are too of many respected commentators, from both the so called right and the so called left, who are warning that the common currency and the Eurozone itself will not survive the financial and political turmoil already besetting the European monetary union and set to deepen in the coming months and years.
According to Stiglitz:
Greece remains in a severe depression. Growth for the Eurozone over the past year has been an anemic 1.6%, and that number is twice the average growth rate from 2005 to 2015. Historians are already speaking of the Eurozone’s lost decade, and it’s possible they’ll soon be writing about its last decade, too.
The euro was introduced in 2002, but the cracks in the single currency arrangement, which began in 1999, became evident with the 2008 global financial crisis.
Indeed, Greece and many periphery nations remain borderline or actually insolvent and this inconvenient truth has been largely ignored in recent months as it would clash with the cosy, and complacent, Eurozone “recovery” narrative.
The recovery is unsustainable as the root cause of the crisis – humongous levels of debt in Greece, Spain, Italy, Portugal and Ireland – was not dealt with rather the debt can was simply kicked down the road.
Please follow SGT Report on Twitter & help share the message.