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George Soros: Germany's Failure to Exit Eurozone 'Fulfilled My Worst Expectations'
Wednesday, 12 Mar 2014 12:47 PM
the eurozone has now 0.8% inflation and 0.25 % interest rates, what is the ECB gonna do if eurzone has 0% inflation or deflation? it only can remove 0.25% more they cant
Wednesday, 12 Mar 2014 12:47 PM
CNBC.com reports.
Germany's decision to stay in the eurozone "has fulfilled my worst expectations," Soros said. Now the region has little chance to recover and likely confronts an extended period of economic woe.
"[This is] endangering the European Union from what it is meant to be, namely a voluntary association," he said. "[It has changed into] something that is radically different, into a creditor debtor relationship."
Right now creditors hold the power, particularly Germany, Soros said. He said Europe has faced "a crisis of ignorance," as neither governments nor markets understood the problems well.
But that is starting to change, Soros said. "The understanding of the issues is now catching up with reality. . . . It gives me hope."
Meanwhile, Financial Times columnist Martin Wolf says the eurozone faces a high risk of deflation.
In the year through February, eurozone inflation totaled 0.8 percent. "This is hardly close to 2 percent," the European Central Bank's target, Wolf writes. "It is also highly dangerous. . . .
The eurozone is just one negative shock away from deflation."
Read Latest Breaking News from Newsmax.com Soros: Eurozone 'Fulfilled My Worst Expectations'
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the eurozone has now 0.8% inflation and 0.25 % interest rates, what is the ECB gonna do if eurzone has 0% inflation or deflation? it only can remove 0.25% more they cant
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