Sunday, February 8, 2015

Dick Morris: The Euro is Dying (Greece to leave the Euro?)

Dick Morris is a well known political analyst. He does brief video commentaries on various issues from time to time. Here, he has offered his view that the situation in Greece will lead to the Euro dying as a currency (at least in its present form). This is a view that is held by other respected analysts right now, so his video recap kind of summarizes that view for readers here. You can watch his video commentary here.

On the other hand, we have the view held by Jim Rickards on this issue. He does not believe events in Greece will lead to the so called "Grexit" or that the Euro currency is dying. In fact, Jim believes the Euro is one of the stronger currencies longer term because EU countries own a lot of gold. He has said many times he does not think there will be a Greek exit from the Euro. You can see a recent CNBC interview here where he talks about it again. In this interview, Jim says there is too much incentive for both sides to work things out.

This is the great thing about this blog for readers here. You can look at various opinions and points of view and follow them over time to see how they turn out. This is another good one to follow. It will be pretty easy to see how it turns out. Either Greece will work out a new deal to stay in the E/U and the Euro or they won't. We should be able to know sometime soon this year.

It is obviously important how this turns out. If Greece and the E/U work things out, we are less likely to have some kind of major event that leads to major monetary system change (at least from this situation). However, if Greece really does turn its back on the E/U and the Euro (and also turns toward Russia), that will be very big news. It could impact the global monetary system. It will certainly cause monetary system change in Europe at a minimum.

There is more at stake than just the fate of the Euro as well. If Greece starts a process that leads to a breakup of the Euro currency, it would be a big setback for all kinds of regional and global institutions (like the IMF). It would send a signal that people are not willing to see more centralized control of either the monetary system or government above the national level. It would indicate that the trend is away from that and towards nationalism and more de-centralized government. So there is a lot on the table here. You can be sure this outcome will being followed closely all around the world and in the halls of the IMF, World Bank, and regional cooperatives like the AU (African Union) who may have interest in a regional currency unit someday.

The days when we can just ignore what goes on around the rest of the world are long gone. This is just another example of an issue that readers here need to follow and stay informed about. We will continue to cover it and try to present different credible points of view. The links above do a great job of giving you a quick summary of both points of view on this.

added note: here is an article that provides an update on the situation

additional note: Greenspan says Greece will eventually leave the EU

No comments:

Post a Comment