Euro founder calls for break up of Euro
May 06, 2013
The European Union seems to be in a serious crisis once again, as they try to figure out how to cope with the problems in southern Europe..
Headline: EU budget talks collapse following rows over funding increase
“Talks to agree the European Union's budget for next year broke down amid rows involving among member states including Britain – sparking a new funding crisis.”
Even Oskar Lafontaine, the euro’s founder seems to have lost confidence in his own creation and is now calling for a breakup of the euro.
Headline: German euro founder calls for 'catastrophic' currency to be broken up
"Oskar Lafontaine, the German finance minister who launched the euro, has called for a break-up of the single currency to let southern Europe recover, warning that the current course is 'leading to disaster'."
At the same time, Warren Buffet says he feels sorry for all the people who are on fixed income pensions, and those who have savings accounts in the bank.
He says that with the FED creating new money at the rate of at least $85 billion per month, people with savings accounts will have a decrease in purchasing power for those dollars, and the interest on savings will remain extremely low.
The Japanese, of course, are somewhat used to this already. They are now in a gold rush, because the value of their currency has been devalued by about 20% just this year. Those who put their money into gold saved that 20%, at least until the recent drop in gold prices. But now they are back to buying, because gold is at record low prices!
How long will it take before Japan’s problem shows up in America? I suppose that depends on how good the FED is at manipulating the economy and the price of metals. They are powerful enough to stay ahead of the collapse for a time, but eventually, they too will be routed by natural economic forces.
There is nothing inherently evil about paper money. The problem is the people who are in charge if its value. If they issued paper claims to things of value, people could always exchange the paper for those things that are of value. The problem comes when they are allowed to issue more paper than can be redeemed, on the assumption that the people will keep their paper money forever.
That only works as long as people have faith that they can always exchange paper for things of real value. Such faith is diminishing rapidly these days. There has simply been too much abuse for too long. Even the government-controlled media is no longer able to instill such faith in the people. There is simply too much mistrust, caused by the abuse of power.
I wrote in March that we should watch the Cyprus effect on Europe first. It will hit Europe before it hits America. Traditionally, such problems would take weeks or even months to cross the Atlantic, but these days with communication being virtually instant, we may not get much advance warning. For this reason we should be watchful, and more importantly, we should use the time we have wisely to prepare ourselves.
Dr. Stephen Jones