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 etc..you 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 ....

The Schiff Report Default Vs. Inflation

Peter Schiff explains the similarities and differences between the Greece economy and that of the United State of America :"Greece borrowed a lot of money , the Greek government running large deficit mainly because the Greek politicians wanted to stay in office and so they promised very lavish benefits in terms of pay packages and pensions to government workers in Greece , they did not want to raise taxes to pay for those benefits so they borrowed the money and everything was fine as long as there were willing lenders they were able to accumulate more and more debt which is of course is always a problem with the credit bubble we experienced that here in the real estate market , people were able to borrow money until the lenders discovered that they won't be paid back and they did not want to lend anymore well the same thing is happening in Greece now Greece has a situation that every nation will have when they borrow a lot of money , they can either cut back on government spending or raise taxes or default , more or a combination through restructuring , and of course Greek politicians they do not want to cut the benefits and there is rioting in the streets people are protesting the benefits cuts they do not want to raise taxes substantially because that also is not going to play out well in the polls , they do not want to default but the problem as far as some economists can see , well Gee if they can only print money , if they only were back in the old good days when they had the Drachma they had no problems they can simply print Drachma , well first of all if they were still using Drachma they were not probably could not to borrow so much money interest rates would not stay that low for so long because creditors would have been worried about them printing Drachmas , they figured that there was more discipline with respect to the Euro "...etc...

Euro on way to a crash?

Jayati Ghosh: The future of the Eurozone itself is now at stake