Tuesday, May 11, 2010

Peter Schiff : Now The Euro is no Better than The Dollar

Peter Schiff
: today the European politicians proved that they are irresponsible as the American politicians , and the Euro is now no better than the dollar as far as I am concerned , in the short term I think the dollar problems are going to outnumber the Euros problems , but Europeans decided that they are going to bailout the creditors of Greece and potentially other European nations that are highly in debt of course the best thing that Europe could have done would have been to allow Greece to default to not bail them out that would have been the best thing for the Greek people and that would have been the best thing for Europe , If Greece have been allowed to default then Greece's creditors would have lost money there would have been a restructuring , instead the creditors are bailed out the losses are socialized not just among the Greeks citizens but among all the citizens who are sharing the European currency , also what this does is it sends a messages to countries like Spain or Portugal can keep on going into debt , it sends a message to their creditors keep lending them the money do not worry about how much money that they borrow because after all if they cannot pay it back there is going to be a bailout and the European Union will pay it back , Germany will pay it back ... so there is no restraints anymore..what the European Union has just said is that no European government none of the countries that share the Euro will default...that everybody will get paid no matter how recklessly they borrow no matter how indebted they become if you lend money to a European country you will get paid back in other words Europe is now like United States we have the same thing we will pay you back why ? because we have a printing press ....

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