Soros: “Financial System Remains Extremely Vulnerable… We Are On The Verge Of An Economic Collapse”
by Tyler Durden
George Soros, Chairman of Soros Fund Management and famous for breaking the Bank of England in 1992, has warned that “we are on the verge of an economic collapse which starts, let’s say, in Greece but it could easily spread.” The 80-year-old investor said that the “financial system remains extremely vulnerable.” Soros added that “there are fundamental flaws that need to be corrected.” The core flaw, says Soros, is that the euro is not backed by a political union or joint treasury, so when something goes wrong with a participating country, there is “no provision for correction.” Soros said that it is “probably inevitable” that highly indebted countries will be given a way to quit the euro. Gold has been the strongest currency in the world in recent years and all major fiat currencies, including the Swiss franc, have fallen against it. Should Greece revert to drachmas, Ireland to punts, Spain to pesetas, Italy to lira and Portugal to escudos, these countries would suffer massive inflation and the price of gold would surge in terms of these local currencies.