EU vs. US

In a time of euro skepticism and criticism of EU affairs from many corners, James Rickards declared, “Not only is Europe doing a lot of things right, in fact, I think they are doing everything right.”

US Economist James Rickards’ whose expertise lies in international finance and who has consulted the US Pentagon and assumed such roles during his 35 years on Wall Street as Hedge Fund and Portfolio Manager, and Senior Managing Director for Market Intelligence OMNIS, speaks favorably of EU decisions and its handling of its sovereign debt crisis.

Each juncture of the EU’s evolution from its implementation of the Common Market directives in the mid-1990s, to the launch of the euro in 1999, to the EU’s ability to remedy its sovereign debt crisis has been met by financial and political experts with skepticism.

The EU currently has 508 million citizens to the US’s 314 million, and its economy is now bigger than the US’s. In addition, the EU is the headquarters to 178 of the Fortune 500 companies. I asked James Rickards, “While all of these facts that are found everywhere why is the EU underestimated by experts?

“It is underestimated by experts in the United States … There’s almost a kind of euro hatred in the United States. I don’t know what to say about it except that they have been wrong for a long period of time.

“If you go back three years to 2011 or even to early 2012 you had very prominent economists like Nouriel Roubini, Paul Krugman; some of them were Nobel Prize winners, and they’re running around with their hair on fire saying, “The euro is going to collapse. Greece is going to be kicked out of the euro.”

“I was the one three years ago who said that’s was all nonsense nobody is getting kicked out, no oneis quitting. In fact the Eurozone will add members over time and the currency itself is strong and getting stronger, and it has played out exactly as I described.”

“As a political project if the political will is there to succeed, then it will succeed because states are very powerful, and more powerful than markets.”

James Rickards further added, “When you look at important parliamentary elections or referendums their pro- European forces have not lost one and there is very substantial progress in the direction of European economic integration.”James Rickards cited the fiscal and uniform banking regulations as examples.

Concerning the experts who were wrong in predicting the collapse of the euro,James Rickards stated, “They were not only wrong, but you don’t hear much from them these days, you certainly don’t hear Nouriel Roubini going out talking about the end of the euro because that’s certainly not happening… how could so many smart people–these people are not dumb they are trained economists, and they have high IQ’s — and so many market participants be so wrong?”

James Rickards authored Currency Wars: the Making of the Next Global Crisis .and the New York Times best seller, The Death of Money: The Collapse of the International Monetary System, which is an extensive reference work on the reasons the dollar will cease to be the world’s reserve currency and James Rickard’s book provides an overview of the current landscape of the international monetary system.


This article is one of a three-part series based on my interview with James Rickards

James Rickards, “Europe is Doing Everything Right”

Euro Will Replace Doomed Dollar

EU Bond Market Will Trigger Dollar Collapse


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