Greenspan:the grand experiment of a common currency "was over" (Euro)

[Poboy]

Jobs Report Awaited; Greenspan Comments Compelling
03 December 2010, 8:11 a.m.
By Jim Wyckoff
Of Kitco News
http://www.kitco.com/


Sovereign debt problems in the European Union remain on the front burner for investors and traders. That situation has been bullish for the gold market for most of 2010, and those problems are not likely to go away any time soon. In an interesting and compelling interview with former Federal Reserve Chairman Alan Greenspan on CNBC Friday morning, he was asked about the sustainability of the Euro currency amid the recent sovereign debt turmoil. Greenspan replied that he knew the grand experiment of a common currency "was over" when the EU's two strongest countries, France and Germany, could not comply with their own debt ratio agreements that were established with the formation of the Euro currency. Greenspan also said the "culture clash" between the European countries is too great to have a lasting single currency. Greenspan is very likely correct in his assumptions, and if he is correct, the Euro currency has seen its best days and could now see an extended period of decline until its demise. Such a scenario would be longer-term gold market bullish as investors would look to buy gold with their weakening Euros.

http://www.kitco.com/reports/KitcoNews20101203JW_am.html

[derby378]

1. Vive le franc?

This will definitely be interesting to watch.