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Soros: 'My Worst Fears Confirmed' on Euro

By Dan Weil   |   Tuesday, 12 Nov 2013 07:20 PM

While Europe appears to be slowly emerging from its recession, many experts say the region's single currency, the euro, remains an unworkable concept.

Hedge fund legend George Soros, chairman of Soros Fund Management, is one of them.

“My worst fears are confirmed,” he told The New York Times. “This is what I was afraid of, that the euro would be preserved and it would pervert the venture and destroy the European Union. Instead of the solidarity that was supposed to be embodied, it became every country by itself.”

Editor’s Note: 5 Reasons Stocks Will Collapse . . .

There are two basic problems with the euro, experts agree. First is that the 17-nation eurozone's monetary policy isn't completely unified, because the European Central Bank can't issue bonds.

Second, fiscal policy isn't at all unified, creating plenty of tension over policy. Now the main tension is that Germany demands austerity from the zone's weaker economies, while governments of those economies want more stimulus.

Soros supports breaking up the eurozone into northern and southern zones to "cure the disparity in competitiveness," he said. "But Germany does not support that, and the other countries can’t impose it. Therefore it is not going to happen."

Another investment legend, Jim Rogers, chairman of Rogers Holdings, holds a bleak view of the euro, too.

"I hope the euro survives," Rogers told Newsmax TV in May. "We need something to compete with the dollar, which is a terribly flawed currency now. I don’t see how the euro can survive as we know it, though."

Editor’s Note: 5 Reasons Stocks Will Collapse . . .

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