Tags: George Soros | Germany | exit | eurozone

George Soros: Germany's Failure to Exit Eurozone 'Fulfilled My Worst Expectations'

Image: George Soros: Germany's Failure to Exit Eurozone 'Fulfilled My Worst Expectations'

Wednesday, 12 Mar 2014 12:47 PM

By Dan Weil

The solution to Europe's financial crisis should have been for Germany to exit the eurozone, says hedge fund legend George Soros, chairman of Soros Fund Management.

Germany's departure from the 18-nation group probably would have sent the euro reeling, allowing remaining eurozone members to boost their economies through exports, Soros said at an event in London Wednesday, CNBC.com reports.

Germany's decision to stay in the eurozone "has fulfilled my worst expectations," Soros said. Now the region has little chance to recover and likely confronts an extended period of economic woe.

Editor’s Note: Retire 10 Years Earlier With These 4 Stocks

"[This is] endangering the European Union from what it is meant to be, namely a voluntary association," he said. "[It has changed into] something that is radically different, into a creditor debtor relationship."

Right now creditors hold the power, particularly Germany, Soros said. He said Europe has faced "a crisis of ignorance," as neither governments nor markets understood the problems well.

But that is starting to change, Soros said. "The understanding of the issues is now catching up with reality. . . . It gives me hope."

Meanwhile, Financial Times columnist Martin Wolf says the eurozone faces a high risk of deflation.

In the year through February, eurozone inflation totaled 0.8 percent. "This is hardly close to 2 percent," the European Central Bank's target, Wolf writes. "It is also highly dangerous. . . .
The eurozone is just one negative shock away from deflation."

Editor’s Note: Retire 10 Years Earlier With These 4 Stocks

Related Stories:

© 2015 Moneynews. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

El-Erian: Greek Election May Unlock Pandora's Box for Global Markets

Sunday, 25 Jan 2015 20:16 PM

The outcome of the Greek elections is indicative of a broader political phenomenon in Europe that involves the growth of . . .

Lundberg Survey: Deep Drop in Gasoline Prices Diminishing

Sunday, 25 Jan 2015 19:39 PM

The average price of regular gasoline at U.S. pumps dropped 13.3 cents to $2.0691 a gallon, as the plunge may be abating . . .

Keep in Mind Tax Deductions for Sales Taxes, Charitable Expenses

Friday, 23 Jan 2015 13:08 PM

Don't look now, but tax season is coming upon us. Kiplinger has assembled a list of the most overlooked tax deductions. . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved