Soros gave a speech at the Festival of Economics, Trento Italy, there he covered his thoughts on the Euro Crisis today, its a fascinating read enjoy!

But the likelihood is that the euro will survive because a breakup would be devastating not only for the periphery but also for Germany. It would leave Germany with large unenforceable claims against the periphery countries. The Bundesbank alone will have over a trillion euros of claims arising out of Target2 by the end of this year, in addition to all the intergovernmental obligations. And a return to the Deutschemark would likely price Germany out of its export markets – not to mention the political consequences. So Germany is likely to do what is necessary to preserve the euro – but nothing more. That would result in a eurozone dominated by Germany in which the divergence between the creditor and debtor countries would continue to widen and the periphery would turn into permanently depressed areas in need of constant transfer of payments. That would turn the European Union into something very different from what it was when it was a “fantastic object” that fired peoples imagination. It would be a German empire with the periphery as the hinterland.


Source: George Soros

  1. I agree with George Soros, that the Euro will be saved by the Germans. They have profited greatly by using the Euro and will continue to do so to keep their control over the currency and Europe as a whole. The will also continue to bellyache about the costs, but that is just a way for them to retain control, why do you think the ECB is headquartered in Frankfurt? It is usual for the Germans to snivel about the costs because they still remember when their “German Marks” were worthless and never want to experience such turmoil again. Pure and simple, the Germans believe they should control Europe, why do you think they fought two world wars over it? I happen to agree that the Germans are the first choice, since the English have decided to stay out of the Euro and this causes them to be useless in deciding any events happening inside Europe as a whole. The financial center of Europe is not going to be London for long and the tide is already shifting towards Germany.

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