The Euro “will collapse” as it is a”house of cards” warned Otmar Issing,
the founder and creator of the euro in an extraordinary interview on Monday.
Paper currency – Euro paper notes and Greek drachma note
In the explosive interview with the journal Central Banking,
Professor Issing, said “one day, the house of cards will collapse” as
the European Central Bank (ECB) is becoming dangerously over-extended
and the whole euro project is unworkable in its current form.
The founding architect of the monetary union has warned that Brussels’
dream of a European superstate will finally be buried amongst the rubble of
the crumbling single currency he designed.
“Realistically, it will be a case of muddling through, struggling from one
crisis to the next. It is difficult to forecast how long this will continue
for, but it cannot go on endlessly,” he told the journal Central Banking in a
remarkable deconstruction of the EU project.
The respected economist launched a withering attack on so called eurocrats
and German Prime Minister Angela Merkel, accusing them of betraying the
principles of the euro and demonstrating scandalous incompetence over its
management.
And he savaged the whole idea of a federal “United States of Europe”,
saying the attempt to push through federalisation in a stealth manner “by the
back door” has turned the very foundations that the currency was
built on into a complete mess of patchwork legislation, into which it is
sinking fast.
As is frequently the case when there is substantive damaging criticism
about the EU and ECB from respected and authoritative sources, the interview
was treated in quite an Orwellian manner. It completely ignored and not
reported by most state run media in Ireland, the UK and EU. Most state
run media is overwhelmingly pro-EU and continues to ignore the serious
problems and growing risks posed by the single currency and the undemocratic
EU to the citizens of Europe. Nor was it reported in most corporate media in
the EU which also tends to ignore all reasonable criticisms of the EU, ECB
and especially the euro.
The explosive interview has been covered extensively in the more “right wing”
euro “skeptic” media in the UK in papers such as The Telegraph and The Mail
which means that most people in the EU will not even be aware of Otmar
Issing’s very real and reasonable concerns and the growing risks posed to the
currency they use in their lives every day and their very way of life.
Gold in Euros – 5 Years
The coming collapse of the euro is seems inevitable. The question is when
rather than if. It gives us no pleasure to say so as the collapse of the euro
will be financially painful for family, friends and people and
companies in all EU nations.
The euro has even greater challenges than sterling which has collapsed
more than 43% against gold this year. It is only a matter of time before
market participants and foreign exchange traders’ focus, moves from sterling
to the ‘not so single’ euro. Then the euro will see a similar depreciation
and devaluation in the coming months.
Gold will again fulfill its primary role which is as a hedge against
currency devaluation. As it has done in the UK and many other nations in
recent months and indeed has done throughout history.
Gold Prices (LBMA AM)
18 Oct: USD 1,261.65, GBP 1,031.15 & EUR 1,145.33 per ounce
17 Oct: USD 1,252.70, GBP 1,029.59 & EUR 1,139.58 per ounce
14 Oct: USD 1,256.15, GBP 1,028.79 & EUR 1,140.08 per ounce
13 Oct: USD 1,258.00, GBP 1,029.93 & EUR 1,141.76 per ounce
12 Oct: USD 1,255.70, GBP 1,024.53 & EUR 1,139.05 per ounce
11 Oct: USD 1,256.40, GBP 1,021.58 & EUR 1,130.76 per ounce
10 Oct: USD 1,262.10, GBP 1,016.62 & EUR 1,129.71 per ounce
Silver Prices (LBMA)
18 Oct: USD 17.65, GBP 14.37 & EUR 16.03 per ounce
17 Oct: USD 17.40, GBP 14.30 & EUR 15.83 per ounce
14 Oct: USD 17.47, GBP 14.28 & EUR 15.86 per ounce
13 Oct: USD 17.59, GBP 14.40 & EUR 15.95 per ounce
12 Oct: USD 17.44, GBP 14.23 & EUR 15.83 per ounce
11 Oct: USD 17.48, GBP 14.26 & EUR 15.78 per ounce
10 Oct: USD 17.78, GBP 14.31 & EUR 15.92 per ounce
