Soros: Germany Could Cause Euro Collapse (FXE)
In an interview released on Wednesday, legendary investor George Soros says he "could not rule out a collapse of the euro." Citing recent German efforts to cut its budget over the next four years, Soros commented that "German policy is a danger for Europe" and "could destroy the European project."
Soros, who is well-known to have made $1 billion betting against the British pound sterling, is closely followed by many investors. His comments do little to restore confidence in the embattled Euro zone. "Right now the Germans are dragging their neighbours into deflation, which threatens a long phase of stagnation. And that leads to nationalism, social unrest and xenophobia. Democracy itself could be at risk," Soros said.
German officials defended budget cuts after comments by U.S. President Barack Obama urging global leaders to refrain from creating policies that are detrimental to the global economic recovery. Soros warned that "If the Germans don't change their policy, their exit from the currency union would be helpful for the rest of Europe."
Investors looking to watch Euro movements can check out the Currency Shares Euro Trust (NASDAQ: FXE).
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