What the Eventual Dismantling of the Eurozone Will Cost the U.S.
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New York, NY (PRWEB) November 09, 2012
In a recent Profit Confidential article, lead contributor and financial expert Michael Lombardi reports that a recent study by Bertelsmann Stiftung showed that if Greece exits the eurozone, 42 of the top economies in the global economy will have to absorb a loss of 674 billion euros (close to US$1.0 trillion) until 2020. (Source: “Greece’s Withdrawal from the Eurozone Could Cause Global Economic Crisis,” Bertelsmann Stiftung, October 17, 2012.) According to Lombardi, a collapse of the eurozone or even just the exit of one country that shares the euro from the eurozone will greatly affect the U.S. economy.
In the article “What the Eventual Dismantling of the Eurozone Will Cost the U.S.,” Lombardi notes, “If more countries like Spain, Portugal, and Italy exit the eurozone, the losses will be in the trillions (in U.S. dollars) and will create havoc in the global economy. According to this study, if these three countries do exit the eurozone, the U.S. economy will be exposed to a loss of 2.8 trillion euros through to 2020.”
The Profit Confidential expert points out that nothing seems to be changing in the eurozone.
“Spain continues to play the same game that Ireland played when it needed its bailout; Greece has failed to implement more austerity measures; and Italy says it has no problem,” he reports.
Lombardi believes this study should be an eye-opener to governments and central banks in the eurozone and the U.S. economy.
“Scrambling to print more money can only go so far,” he says. “Maybe it’s about time those in charge come up with a different plan to help the troubled eurozone.”
While Lombardi started warning about recessions happening in the eurozone back in January of 2012, well ahead of most economists, he now also warns of the crisis in the eurozone spreading from one country to another in rotation.
He concludes that while the U.S. economy had a chance at economic growth after the worst recession since the Great Depression, that chance is gone now because of the eurozone crisis.
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market...before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.