“The eurozone isn’t working …” warns Greenspan
“I view gold as the primary global currency” said Greenspan
“Significant increases in inflation will ultimately increase the price of gold”
“Investment in gold now is insurance…”
-La zone euro ne fonctionne pas.
-les déséquilibres économiques au sein de la zone euro sont inquiétants
-l’écart en Europe entre les pays du Nord et ceux du Sud est trop grand
-je vois l’or comme la monnaie globale
-une hausse significative de l’inflation va en definitive augmenter le prix de l’or
-l’investissement dans l’or reste une assurance
-il est inquiet pour l’avenir
Alan Greenspan, the former head of the Federal Reserve has warned that the euro may collapse, saying that he has “grave concerns” about its future.
The imbalances in the economic strength of euro area countries make the continued function of the single currency area a primary concern, said former US Federal Reserve chairman Alan Greenspan in an interview (February issue of “Gold Investor”) with the World Gold Council.
He suggests the inequality is largely down to a north/south geographical divide which means the division between the northern and southern EU countries is too big. The bloc’s more prosperous nations such as Germany consistently fund the deficits of those in the south, and that simply can’t go on, said Greenspan.
“The European Central Bank (ECB) has greater problems than the Federal Reserve. The asset side of the ECB’s balance sheet is larger than ever before, having grown steadily since Mario Draghi said he would do whatever it took to preserve the euro,” he said.
“And I have grave concerns about the future of the euro itself… The eurozone is not working”, added Greenspan.
Greenspan, chairman of the Federal Reserve from 1987 and 2006 has consistently been critical of the eurozone and the European Monetary Union (EMU). He has long maintained that the eurozone was doomed to fail because the impact of the divergent cultures and economies in the bloc has been grossly underestimated.
Greece is currently in the midst of yet another financial crisis with withdrawals from bank accounts and new bank runs indicating the public is preparing for a crash. Meanwhile Europe’s oldest bank, Banca Monte dei Paschi di Siena, in Italy is on the verge of bankruptcy and needs another bail out to survive.