Wednesday, June 23, 2010

The Euro is on the verge of a collapse that could drag Europe into conflict, billionaire financier George Soros warned yesterday.

“German policy is a danger for Europe. Unfortunately, a collapse of theeuro and the European project cannot be ruled out.

“That would be tragic because then Europe would be threatened by the sort of conflicts between states that have shaped European history.”

Mr Soros added his voice to suggestions that Germany might do better to abandon the troubled eurozone, which is struggling to survive the Greek debt crisis and speculation about the economic health of other members, including Spain.

The German government aims to save about 80 billion euros (£66.5billion) between next year and 2014 by slashing welfare spending, cutting the public sector workforce and reducing subsidies.

But Hungarian-born Mr Soros warned: “The Germans are dragging their neighbours into deflation, which threatens a long phase of stagnation.

“That leads to nationalism, social unrest and xenophobia. Democracy itself could be at risk.”


see also my post on June 6, where I had written:

"crisis of leadership and with notfunctioning democratical structures the institutions will get restructured... They will be confronted with a long period of depression/stagnation or little ups and downs following each other, while the elite is changing their economical models...such social tensions will get more intense, energy and resource prizes will also rise, bank loans will get limited or very expensive and the allowed state deficits get more restricted. Investment in R+D instead of Consumer goods. This is a learning program during its course the man on the street "has to learn" how not to spend less as there is nothing left for him anyway. Additionally they will introduce a "moral culture", where the little citizen is kept submissive through the acceptance of moral and global rules under the elites close surveillance and can feel honoured and fine with nothing in his hand to feed his children." Link

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