Tuesday, May 4, 2010

What Will Happen To Currencies If The Euro Collapses?

Let us start off by saying that we do not see the Euro collapsing and being shelved, at least not yet, anyway. No exit process was written into their rules anyway. But it is technically possible, so better to be forewarned. What would prompt such a collapse? The future of the Euro lies in the hands of its members, especially Germany - the richest and strongest member of the Eurozone. It would be because the leading member [Germany]) felt it to be in their national interest(s) to let it fall. There would be absolutely no philanthropy in the process should anybody exit or if the Euro disappeared. Principally, would Germany, et al, gain more by leaving the Eurozone than staying in it? It may be more in their interests to have the poorer nations ejected from the Eurozone to keep the big benefits and to lose the problems. Then they would hold onto the Euro. But what would any of these possibilities result in? [Subscribers will receive the last paragraph on the impact on gold] (more)

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