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Friday, April 26, 2013

German government adviser: Euro may not survive more than 5 years

 
Dr Konrad, chairman of a scientific council that advises the finance ministry of Germany, said: “Europe is important to me. Not the euro. And I would only give the euro a limited chance of survival.” When asked whether Euro could survive 5 years, he replied:  “A concrete period is hard to identify as it depends on so many factors. But five years sounds realistic.
 
Does this sound familiar? See what I said back in August 2012 : "it (Euro) won't survive in its current format within 5 years.". As I have repeatedly said, Euro is a rather faulty fiat currency and it is doomed to fail. Konrad is a senior figure in Germany with quite significant influences on financial issues. Apparently he is also very pessimistic about Euro.
 
If Euro tries to appreciate against US$ again to $1.35, it will be a great time to short it via EUO, but better via EUO put options since EUO is treated as Limited Partnership, a headache in terms of tax filing.

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