The Euro dropped substantially the past few minutes as markets opened (Sunday).
It declined from 1.12 to 1.08 and keeps sinking. The financial market do not like what they see ahead for Europe and a disgraced currency.
The European experiment is creating poverty. There is no question about it. I have been writing about it for many many years. Germany is the only country benefitting from the Euro.
The southern European countries are paying the price. It is not Germany's fault. The issue is that in a large economic area you cannot put together high productivity wealth producing countries and other countries with low productivity.
The high productivity countries will destroy the low productivity countries because capital is bound to go where wealth is produced and will escape the low productivity countries.
This is exactly what has been happening. This is the reason I have been predicting an unfortunate outcome for the EU. It is sad to see so many people suffering because of a few bureaucrats' bad idea.
Will the markets win as they did in the past? Time will tell.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Author, Profiting in Bull and Bear Markets
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