M&M claims European financial crisis will worsen and US dollar will soar

Larry Edelson of Money and Markets believes that Europe’s financial crisis is not over, but will worsen:

Europe’s Crisis Over? Hogwash!

August 19, 2015

Almost everyone I talk to thinks the European sovereign-debt crisis has passed. They say Greece’s bailout fixed the problem. Europe is on the mend, they say.

But as far as I’m concerned, nothing could be further from the truth.

First, severe austerity measures continue to this day and they are causing debt-to-GDP ratios to worsen. …

Second, austerity and climbing debt levels are hollowing out Europe’s economic growth. …

Third, some of the worst unemployment we’ve seen in modern times. …

In short, nothing, and I mean nothing, has been solved in Europe. The crisis will soon escalate with a vengeance.

When (not if) Europe’s economy roils again:

First, you’re going to see trillions more euros stampede for the exits. That’s going to send several large European financial institutions down the tubes.

Second, that flood of capital is going to send the U.S. dollar again into rally mode. Just like it did in the early 1930s when Europe last went bankrupt. http://www.moneyandmarkets.com/europes-crisis-hogwash-72877#.VdSGA_Tw82E

Larry Edelson is correct that all the financial problems in Europe have not been solved.  Larry Edelson is correct that Europe has debt. Larry Edelson is correct that Europe has high unemployment.  Larry Edelson is correct that there are likely to be problems with European financial institutions.  Larry Edelson is correct that the US dollar tends to benefit when Europe has problems.

But is that the end game? ...     

News Presenter:  John Hickey.