Monday, July 11, 2016

Martin Armstrong — The Euro on the Brink of Disaster


Martin Armstrong predicts the imminent collapse of the euro.
The is starting to illustrate what I have been warning about. The EURO is in effect like a gold standard. When crisis hit, everyone had to suspend the gold standard for World Wars I and II and then upon the fall of Bretton Woods. The currencies were tied to gold which they could not increase its supply. This is the same crisis now with the EURO. Despite the EURO is really just electronic/paper, its quantity is still fixed by the EU membership. No single member state can just increase its supply unilaterally. That would be like trying to maintain a gold standard and one nation revalued its gold to three times that of what everyone else uses. That becomes impossible. The Silver Democrats nearly caused the bankruptcy of the USA for overvaluing silver relative to the world in the 19th century.
This is why the euro CANNOT SURVIVE. You have sovereign states with their own crisis and that demand measures separate and distinct from other members. This is how the euro system will break. It is extremely urgent that you understand the crisis ahead
It's looking, too, like Deutsche Bank many be the new Creditanstalt.

Of course, none of this is necessary operationally. but sticking to the rules, as Germany insists upon, will likely bring the entire house of cards down.

Armstrong Economics
The Euro on the Brink of Disaster

5 comments:

Bob Roddis said...

When crisis hit, everyone had to suspend the gold standard for World Wars I and II

Big lesson here. Don't suspend the gold standard and you won't have wars.

Tom Hickey said...

Don't suspend the gold standard and you won't have wars.

Doesn't follow. Wars begin while the gold standard is in place and the gold standard is dropped to finance the war. So if one party maintain the gold standard while the other drops it to finance the war, the other party goes bankrupt or loses the war for lack of ability to finance it.

Anyway, historically metals were required to fight wars before conscription because troops required payment in metals. Conscription was not possible in a agricultural economy since most of the people required to produce the food.

The argument would have to show that when a gold standard is in place and adhered to, there is no war. Historically, that doesn't seem to be the case.

Ignacio said...

The wars happened because the gold standard... Big lesson there.


Had we maintained a gold standard there wouldn't be a world to live in by now.

Tom Hickey said...

Gold and sliver were the basis of mercantilism-colonialism that began with the Spanish theft of Native Americans' gold. Many European conflicts ensued with mercantilsim as a factor.

Bob said...

Did you know that gold mining in Zimbabwe is profitable?