Euro to Collapse—People Rush to Buy Gold as Trust in a Single Currency Disappears
Alan Greenspan, former head of the US Federal Reserve, has warned that the euro is about to collapse. He says it’s time the European Central Bank (ECB) came clean about the state of the economy, as the bank’s chief Mario Draghi scrambles to save the institution.
The euro has been plagued with scandals after a stress test last year showing that many of the 19 countries that took on the currency from 2002 are facing unprecedented debts.
Greece is currently in the middle of yet another financial crisis, with withdrawals from bank accounts indicating the public is prepping for a crash.
Meanwhile Europe’s oldest bank, Italy’s Banca Monte dei Paschi di Siena, is on the verge of oblivion and needs a bailout to survive. Germany’s largest lender, Deutsche Bank, is facing a crisis as it struggles with non-performing loans.
Greenspan said the Brexit will almost certainly trigger a collapse of the ECB despite the UK not having taken on the currency. However, the EU is dependent on the UK for income as it tries to monopolize the arrangements of 28 member states.
Greenspan says that investors are looking for safe havens, including precious metals, because there is no trust in the banking system, and that countries cannot continue to borrow in the way that they have been, signaling that quantitative easing is not working.
He said: “I view gold as the primary global currency… Today, going back on to the gold standard would be perceived as an act of desperation. But if the gold standard were in place today we would not have reached the situation in which we now find ourselves.”