More Trouble for the Euro

Over the years, a great deal of attention has been focused on the dollar and its troubles born of feckless fiscal and monetary policies in the US.

Less attention has been paid to the euro–that common European currency started in the late 1990s. The euro is very nearly as significant to the global economy and financial system as the dollar. That’s because the combined economies that make up the European Union are on a par with the US economy in terms of size. And if you look at Europe, you see clearly that their fiscal and monetary policies are very similar to those of the US.

What all this boils down to is that both the dollar and the euro are built on shifting sands. Neither can be considered a long-term viable alternative to the other. Each may benefit in the short-term from trouble in the other, but, over the long-term both of these currencies are shackled by much more fundamental problems.

This is especially significant in view of a recent article published by The Telegraph in the UK which describes the euro’s troubles in detail and proclaims that the euro is entering an era of permanent depression:

Investors must not put their trust in man-made paper currencies. Man has the tendency to grossly overproduce when it comes to money. That is happening in the dollar and the euro right now and has been for some time. But men and governments cannot print any more gold. Gold is the ultimate form of real money and has been for 5000 years. Investors need gold to balance a portfolio overweight in paper to provide the diversification and performance potential that only gold can provide when governments undermine the value of their national currencies…


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