George Soros: Germany Has Three Days To Avert Worldwide Disaster
George Soros, the billionaire investor who made the majority of his money investing in foreign currency, had some dire warnings for Germany on Monday. Soros told the Germans that if they didn’t come up with some kind of plan for a European fiscal union within the next three days than the Eurozone may just go down the road to disaster.
Soros told Bloomberg TV,
“There’s a disagreement on the fiscal side, and unless that is resolved in the next three days, then I’m afraid the summit could turn out to be a fiasco, and that could be actually fatal because you are facing the possibility of Greece leaving the euro and perhaps the European Union, and you need to strengthen the remaining euro structure to withstand that shock,”
Soros is afraid that the members of the Eurozone that are not in the news, the so called peripheral Eurozone countries, will be stuck in a permanent recession because the instability of the Eurozone will cause them to pay sky high interest rates on their debt. If there is a fiscal union, than the financial power of Germany France and other well off countries will be able to enable those countries to implement policies that will lead to growth.
Soros further said that if the Germans were to lead a fiscal union than they can establish some form of central European bank which would allow the Eurozone countries to borrow money at great interest rates.
Soros wrote in the Financial Times of Germany about the dire consequences of not dealing with the problem,
“Even if a fatal accident can be avoided, the division between creditor and debtor countries will be reinforced and the ‘periphery’ countries will have no chance to regain competitiveness because the playing field is tilted against them. This may serve Germany’s narrow self-interest but it will create a very different Europe from the open society that fired people’s imagination. It will make Germany the centre of an empire and put the ‘periphery’ into a permanently subordinated position.”