Because the dollar is so linked with the euro, the euro’s demise would eventually destroy the dollar as well.
Austin, TX (PRWEB) January 15, 2012
A new report from Absolute Wealth Managing Editor James R. Gorrie says that the current crisis with Italy combined with ongoing problems in Greece are possible signs of an eventual crash of the euro, and that there is a direct connection from euros to dollars.
Mr. Gorrie says that “The Federal Reserve is lending dollars to the ECB to keep it afloat. So the safety of the ECB is really the safety of the Fed. How would a euro failure effect the dollar? I talked to our currency expert Jason Fielder about this as well.”
Jason Fielder is a senior currency expert at the think tank Absolute Wealth. “When the euro goes, we all go. All of us,” says Mr. Fielder. “ The dollar is tightly linked to the euro, as are our economies”.
Mr. Gorrie says that Mr. Fielder is correct. “Because the dollar is so linked with the euro, the euro’s demise would eventually destroy the dollar as well. With a collapse in the euro, European nations would be thrown into deep recession. Demand would shrink dramatically; and therefore, the US would suffer as well. Because the EU is the largest trading partner of the US. Political stability, social unrest, and violence may sweep some European countries into deep crisis. Perhaps even leading to military solutions to quell unrest. This is one scenario of many.
Will the euro crash? Only time will tell says Mr. Gorrie. But with the bailouts of Greece and serious problems with the Italian economy, he says it is possible that a crash could occur and take the U.S. economy down with it.
To read the report on the possible crash of the euro, visit the Absolute Wealth website.
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