Edelson: The Euro Could Completely Collapse This Year

From Larry Edelson: There is no question Europe has been struggling. In fact, the eurozone’s growth over the past year reached a paltry 1.6%. What’s even more depressing is that this number is twice the average growth rate from the previous ten years.

So, with anemic economic growth and with a debt crisis starting to bubble up to the surface, could 2017 finally be the year we see the euro collapse?

I certainly think it’s possible. And if not this year, by 2020 for sure.

And the fact is I’ve been warning of this since all the way back in 1998 — before the euro even got off the ground — when I told everyone that the currency wouldn’t last. And last week, I wrote about the impending doom of the European Union.

Here’s why the euro is going down …

Sluggish economic growth and mounting debt have left many countries in the eurozone on the brink of economic and political collapse.


Save your euros … because they’ll soon be collectors’ items.

Greece is already bankrupt. And the Greeks aren’t making much progress on their current bailout review while they refuse to accept more austerity measures. Furthermore, Italy’s banks are on the brink of collapse.

Portugal’s banks are not much better.

And because of the higher levels of debt and unemployment — and the increased political discontent across the eurozone — the next crisis could be right around the corner.

Sentiment in Italy is turning very anti-euro, and this view is beginning to emerge in other eurozone states.

And if Italy leaves the EU, the fallout could be far worse than what we saw with Brexit. Unlike Britain, Italy actually uses the euro, and its exit could pave the way for other European countries to follow them out of the EU.

And it’s not just Italy: Elections in France and the Netherlands could also undermine the euro.

The authoritarian attempt to rule Europe by the leaders in Brussels is leading to the demise of the euro. And much faster than one might think.

Adding fuel to the fire: The insane management of austerity and negative interest rates from Brussels.

Even Professor Ted Malloch, President Trump’s expected pick to the be the ambassador to the EU, agrees. He was recently quoted as saying, “The euro’s days could be numbered. A collapse of the single currency is possible in the next 18 months.”

The motivation for creating a single currency was to bring greater prosperity to Europe.

But, in the end, the euro was a political project. And the politics weren’t strong enough to create the institutional arrangements needed to ensure its success.

Now, the euro’s future depends on massive political uncertainties. And without major political and economic reform in Europe, the euro is doomed.

The ProShares UltraShort Euro ETF (NYSE:EUO) was unchanged in premarket trading Tuesday. Year-to-date, EUO has declined -3.06%, versus a 1.80% rise in the benchmark S&P 500 index during the same period.

EUO currently has an ETF Daily News SMART Grade of B (Buy), and is ranked #2 of 5 ETFs in the Inverse Currency ETFs category.


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