Is the U.S. the Next E.U.?

The European Union is under tremendous stress, as riots grip several member states and

collapse hangs in the air. With the U.S. facing its own

, could it follow the EU down its economically troubled path? Is the U.S. potentially even worse off than Europe? What effect could that possibility have on the Euro/U.S. dollar pair? Tuesday, economic commentator Peter Schiff appeared on CNBC's

(Schiff is famed for having

the housing bubble). In his appearance, he alleged that the U.S. is in a more troubled state than Europe. Schiff stated, “As bad as the situation is in Europe and Japan, it is worse here…people thought that QE2 was training wheels on a bike. QE2 isn't training wheels, it's the only wheels. We're a house of cards.” In December,

reported that Li Daokui—an academic adviser for the People's Bank of China—characterized the fiscal problems in the United States as being worse than Europe's. The Chinese official predicted that U.S. bond prices and the dollar would fall after the European economic situation stabilized. If Schiff and Daokui give an accurate assessment, then Americans ought to brace themselves for a tumultuous future. Should the U.S. prove to be truly worse off than Europe, the dollar may depreciate against the Euro in the future. Traders may want to consider iPath EUR/USD Exchange Rate ETN

. ERO may do well in an economic environment where the U.S. dollar is depreciating against the Euro.