Soros: EU Breakup Would be Devastating to Global Economy
A collapse of the euro and break-up of the European Union would have catastrophic consequences for the global financial system, billionaire investor George Soros was quoted as saying.
“Today, the euro is potentially endangering the political cohesion of the European Union,” the Business Line newspaper cited Soros as saying in the south Indian city of Hyderabad.
“If the common currency were to break down, it will lead to the break up of the European Union itself. And this will be catastrophic not only for Europe but also for the global financial system.”
The euro zone crisis is “more serious and more threatening than the crash of 2008,” the Economic Times reported, quoting Soros.
In the near term, some of the euro zone countries may have to take more austerity measures because of the imbalances between the “creditor and the debtor countries,” Soros said at a business school event, the Mint newspaper reported.
“Unfortunately, they haven’t yet solved the acute financial crisis and that is causing the situation to deteriorate…and (it) is not at all clear it will have a solution,” he said.
Dr. Pinna says:
Mr. Soros is obviously worried about the European Financial System collapsing because many countries cannot pay their debts.
Does this worry have validity? Would you worry if a parasite had invaded your nervous system and was making you extremely weak; and, suddenly, the parasite was going to die? You would not worry! You would be extremely happy!
Anyone with a clear and profound understanding of economics can easily see that the Financial Industry, (banks and similar entities) is a major parasite on the world economy.
The Financial Industry produces nothing of value. Its only function is the processing of money from one entity to another. It collects and pays debts.
Borrowing money and repaying that money with interest makes any country or individual weak.
If we look at money as energy, we can easily see that if we get 100 units of energy, but repay 110 units of energy, that extra 10 units must come from our total store of energy. This reduction of our total energy makes us weaker.
GROWING VERSUS AGING COUNTRIES
Any country which growing can tolerate parasites much better than any country which is aging. In the growth phase there is excess energy available and the energy taken by a parasite can be tolerated.
In the aging phase, all energy is needed for survival, and the energy taken by a parasite can easily bring about death.
EUROPE IS AGING RAPIDLY
Europe, economically, was in a growth phase fifty years ago.
It is today declining economically, culturally and demographically. New business is disappearing as can be attested to by the growing unemployment numbers across Europe.
Job seekers are coming from poorer areas of the world and the indigenous population is trying to hold onto their money/energy as they no longer can compete in the labor force.
The parasitic financial system is overwhelming the entire European economy—demanding more and more interest for loans that keep the governments in power.
Almost everything in Europe is being imported from areas of the world where labor is cheaper.
WHAT WILL HAPPEN IF EUROPE COLLAPSES?
If various weaker countries exit the Euro Zone, the people in these countries will lose more of their money/energy.
These countries will be weaker and they will not be able to support the financial parasites on their shoulders.
THE TOURNIQUET ANALOGY
An excellently trained doctor is working in an Emergency Room. You are that doctor.
A patient is brought in from a terrible car accident. His name is Greece. His clothes are torn and he has bruises and scrapes all over his body. But, worst of all, he is bleeding profusely from his right hand.
You note that the patient is pale and sweaty and that his blood pressure is close to zero. You instantly realize that the patient is losing so much blood from his torn right hand that he will shortly die.
Without hesitating you put a tourniquet around his right arm. The hand stops bleeding and the patient’s color returns. His blood pressure rises. He will not die.
But, has hand is turning blue. The cells in his hand are not getting blood or oxygen. The hand is dying. If you release the tourniquet, the patient will die. If you leave the tourniquet in place, the hand will die.
What do you do? You examine the hand carefully. It is thoroughly crushed. The bones are broken, most of the skin is torn away and there are hundreds of bleeding small arteries. It is impossible to repair that hand so that it wont leak blood.
Without waiting, you wrap the hand and take the patient to the O.R. (Operating Room.) You amputate the hand. The patient recovers uneventfully and the next day he is smiling at you.
He has grown a beard during the night and has a remarkable resemblance to Plato or Aristotle.
You made the right choice.