Jim Rogers on Euro: Europe Has Given Up on Euro

That's what I thought when I saw that $1 trillion "nuclear" plan to "rescue" euro, which is already back to the level seen last Friday, before the plan was agreed.

(I got the link to this article at Lewrockwell.com.)

Europe has given up on the Euro, says Jim Rogers
(5/12/2010 Business Intelligence Middle East)

"Speaking in a Bloomberg interview in Singapore on Tuesday, Rogers said “I was stunned,” adding “This means that they’ve given up on the euro, they don’t particularly care if they have a sound currency, you have all these countries spending money they don’t have and it’s now going to continue.”

"The 16-nation currency weakened for a second day against the dollar after rallying as much as 2.7% on Monday, when the governments of the 16 euro nations agreed to make loans of as much as €750 billion (U$962 billion) available to countries under attack from speculators and the European Central Bank pledged to intervene in government securities markets.

"...“It’s a political currency and nobody is minding the economics behind the necessities to have a strong currency,” Rogers said. “I’m afraid it’s going to dissolve. They’re throwing more money at the problem and it’s going to make things worse down the road.”

"...Speaking to Bloomberg on March 8, Rogers had suggested that bankruptcy for Greece would benefit the euro. "The Euro will shoot through the roof," he said adding that letting Greece fail" will show that EU are serious about fiscal responsibility."" [Emphasis is mine. Full article by following the link.]

Well, it didn't happen. The only European leader who insisted on fiscal responsibility, Germany's Angela Merkel, was persuaded by none other than Barack Obama and joined him and a host of other leaders in selling her people down the river of debt.

I also have a feeling that the European leaders and technocrats who came up with the common currency didn't really care about sound currency to begin with. As I said before, I have a feeling that almost the only purpose of the currency Euro was to tie down Germany, and use the currency scheme to transfer wealth and capital from German people to the rest of the EU, particularly the members in the south.

It was a political currency, as Jim Rogers say, and I agree. I suspect it has been just that, all along. Dissolution of that currency, therefore, may mean dissolution of the EU.

I still have old Deutsche Mark somewhere. It may come in handy soon...

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