June 24, 2011 | In: Opinion

When Will the Euro Collapse?

I have talked about Greece, Europe, and the Euro a few times before. I have discussed how Greece is affecting the whole European market (and the American one as well), how Europe is becoming nothing more of another Chinese colony, and how the death of the Euro is imminent. But when will it be?

Let us examine what’s going on in different parts of Europe, particularly the PIIGS countries (Portugal, Ireland, Italy, Greece, and Spain):

- Portugal wants some tougher austerity measures: As if the previous measures weren’t enough, the new Portuguese government wants to make them tougher. I don’t see the Portuguese revolting, after all, they lived under a communist dictator for a long, long time.

- Ireland’s economy is in freefall: Yes, check the Irish banks, notice the very bearish trends. That country’s economy is going nowhere. Someone, somewhere, decided that Ireland is no longer exemplary when it comes to economy. Not only that, the Irish are now remembering, again, that there is Northern Ireland (if you get my point).

- Italy’s economical problems are no better than Ireland’s: But it’s not the time right now to unveil the horrors of what’s going on there, economy wise. Just today, the spread between the Italian and the German 10 year bonds reached a new record since the Euro was created. Not to mention, of course, Italians are much more like the Greeks when it comes to loving life, and hating large organizations that control their lives (in other words, the government).

- Greece is currently being bailed out for the hundredth time: Which means more austerity measures to the life-loving Greeks. I don’t know how much longer they can wait before moving back to drachmas. But the question is, can they move back to their original national currency? Currently, the European Union is giving more and more loans at exorbitant rates in Euros, maybe to enslave them. The problem is that Greece will never be able to pay its debts, at one point, the Greeks will truly revolt and there will be nothing that can stop them. Some are suggesting that the only solution to solve the Greek problem is to sell some state assets such as historical landmarks and islands. Imagine the Acropolis with a German flag flying over it.

- Spain’s having a constant barrage of protests: And these protests are just the beginning. You can’t expect to enforce austerity measures on a population that have just started enjoying prosperity.

So, when do I think the Euro will collapse? Not this year, maybe next year, and if not, then definitely in 2013. By then the Germans, the French (whose economy may soon be in trouble), the Portuguese, the Irish, the Italians, the Greeks, and the Spanish will discover that they’re not the same people, they don’t have the same interests, they have different lifestyles, and they don’t want to be bound together by this one currency, that nobody seems to like anymore.

It was good that the Europeans created the Euro, so that the whole world knows that the USD is the only real international currency in this world.

By the way, do you know that the word Europe (of which the word Euro comes) originally refers to the Phoenician princess Europa, who, according to the Greek mythology, was seduced by Zeus? So I guess the Europeans do owe something to the Greeks!

14 Responses to When Will the Euro Collapse?

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jonny

June 29th, 2011 at 3:46 pm

what has the economic turmoil in ireland got to do with the riots in northern ireland?

what do you mean by the irish are now remembering northern ireland?

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Fadi El-Eter

July 1st, 2011 at 3:20 am

Hi Jonny,

Usually economical/financial problems lead to civil unrest and political instability.

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Jema

July 26th, 2011 at 6:19 pm

The USD is also collapsing, although the Euro will collapse first leaving a 3 week window for Americans to dump the dollar. Too late to close a retirement account and buy gold in that time frame, however. Only those with enough foresight (real currency like gold & silver & food storage) will see their way out of the coming disaster.

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Fadi El-Eter

July 27th, 2011 at 6:36 am

Hi Jema,

Are you suggesting that we should all stop using the global currency (the USD) and start using gold instead? For example, when buying a new car, do you want to pay the dealer with gold?

I think the USD is here to stay…

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How Can the Dollar Survive? « Fadi El-Eter

August 11th, 2011 at 9:38 am

[...] casting some doubts on whether the Euro will still exist in a few years from now (I think that by 2013 the Euro will vanish, or at least will not be as strong as [...]

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Devaluation of the Dollar « Fadi El-Eter

August 31st, 2011 at 11:26 am

[...] of the US money policy. Next year, the Euro will become the main concern for investors (I think the Euro will vanish by 2013 anyway) as well as the other so called hedge [...]

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david jones

September 17th, 2011 at 9:13 pm

and the Almighty US dollar will reign supreme

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October 19th, 2011 at 8:27 am

[...] is now regaining its strength against all other major currencies, including the Euro (that may disappear in 2013). Traditionally, the strength of stocks is inversely proportional to that of the dollar, which [...]

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SEAMUS MSBRIDE

November 1st, 2011 at 2:24 pm

You think US dollar will not collapse??? US economy is in a rally bad shape, 40% of population lives below poverty line, US owes more money then the rest of the world combined! Wake up and get rid of your savings in USD!

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Fadi El-Eter

November 3rd, 2011 at 10:38 am

Hi Seamus,

The USD will only collapse when there is another better alternative. The economy of the whole world depends on the USD (not on gold).

The Euro is not an alternative at all. Even today there will be a vote to test Greece’s approval of the Euro.

The USD is the currency of one country that is used by many countries. The EURO is a currency of many countries that is loathed by the very countries adopting it. Every sane taxpayer in Europe is slowly turning against the Euro. What was the problem with the Deutshe Mark? the French Franc? The Greek Drachma?

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Dare

November 15th, 2011 at 7:48 am

Hello everybody,

I have not lot of economy knowledge but have one simple question. I have money savings in EURO currency in one French bank. What do you advise me to do with money?
1. Exchange them in US Dollar or Swiss currency and leave money in bank?
2. Withdraw from the bank?
3. Buy gold ?

Thanks for the answer
Darko

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Fadi El-Eter

November 15th, 2011 at 1:25 pm

Hi Dare,

Probably everyone else will say buy gold, but I think gold is overpriced. A good thing to do is to exchange half of them to USD and leave the rest in Euro. Wait for a few months, do the same thing for the rest of the amount you have in Euros (exchange half of the rest in USD, and leave half of it in Euro). Repeat until the amount of Euros that you have is so little and then change it all…

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December 5th, 2011 at 3:05 pm

[...] They learned that the USD remains the world’s reserve (and best) currency, and they learned that any other currency should not be trusted (all of the other currencies are valued in USD after all), and that the end of the Euro is nigh… [...]

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Investment Strategies for 2012 « Fadi El-Eter

December 6th, 2011 at 6:12 pm

[...] it brought joy the first few years, but when the jig was up, all that joy turned into pain. The Euro will collapse in a couple of years, and every country will go back to its own national currency (I think the Euro [...]

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