Investor Jim Rogers says the euro zone shouldn't have agreed to rescue Greece.
"The Greeks have never lived within their means, and I suspect this time they won't either, until they're forced to by either bankruptcy or by someone just refusing to give them loans," Rogers says.
When the European Monetary Union was created, participating countries agreed to a set of guidelines designed to help keep the euro area fiscally sound. Even from the beginning, Rogers says, several countries, Greece included, chose not to observe the rules.
"The original treaty said … no one is going to have a deficit of over 3 percent of gross domestic product,” Rogers told CNBC. “And you see what's happened ever since.... nobody, well, very few people, countries in Europe have maintained that guideline."
“A few years ago the French came up with some phony bookkeeping that was so absurd that even the Italians were stunned,” Rogers points out. "And the Italians have been using phony bookkeeping for centuries,” he alleged.
“This is rampant in Europe."
Though Rogers believes that helping Greece short-term will boost the value of the euro, he still maintains the European currency will ultimately fail.
The euro rebounded sharply higher after the leaders of the European Union settled on a plan assisted by the International Monetary Fund to bail out Greece, but the episode exposed weaknesses that may yet haunt the single currency, dailyfx.com reports.
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