Richard Russell – Europe Headed into Massive Collapse
KingWorldNews.com
April 5, 2012
With gold holding near the $1,625 level and global stock markets attempting to stabilize, the Godfather of newsletter writers, Richard Russell, talked about Chinese gold purchases and warned about a coming massive collapse and depression in Europe and urged investors to protect themselves: “Older subscribers probably remember the brilliant Richard Koo. He was the FIRST to warn of the coming balance sheet recession. In yesterday’s Financial Times Koo warns that if the ECB cuts back on money creation, Europe could be in for an economic depression.”
Richard Russell continues:
“Koo finds agreement from Nouriel Roubini, the famous NYU prof. who was the first to warn of a coming housing collapse. Says Roubini, ‘Europe could get worse than Japan. Japan had a Great Recession and a Great Stagnation, but it never had a Great Depression. But a recession in some Eurozone countries could become a depression, just like the 1930s.’
The question the European central bank is facing is whether to cut back on money creation (thereby avoiding inflation — Germany will not tolerate inflation) — or go full steam ahead, and inflation be damned. So far, it looks as though the ECB is cutting back, and that, warns both Koo and Roubini, will mean recession or depression.
Richard Koo and Nouriel Roubini, both believe that cutting back on spending now could lead to depression in Europe. They both agree that the European centeral bank must open up the spigots. God save the Euro. The way its going, the Euro is going to need God’s help.
The Rest…HERE
