In a verbal attack against the ways in which Angela Merkel –German Chancellor – is handling Europe’s debt crisis, George Soros again warns of further disaster on the way…
Another Great Depression may lie right around the corner, says Soros.
If Merkel continues to insist merely on increasing spending cuts rather than injecting funds into the system, she may inadvertently re-create a scenario all too similar to the mistakes that brought about the Great Depression in America back in 1929.
Running out of things to cut, Europe is running out of ways to stay afloat. Angry protestors have resorted to rioting and violence turning a sour economy into an unpredictable ball of chaos and anarchy.
Admiring Ms. Merkel’s leadership, Soros still speculates that she is pushing Europe in the wrong direction.
According to Soros, it was a grave mistake to offer Greece a bailout option tied to high interest rates.
"That's why the country can't be saved today, and the same thing will happen to Italy if we put this country in the straitjacket of paying harsh interest rates," Soros said.
A Greek default would cause an escalation of the crisis and could lead to a run on Italian and Spanish banks, and "Europe would explode," he said.
Moreover, Soros asserts that Europe may be able to deal with the crisis without additonal aid from the International Monetary Fund if they shift their recovery-focus and stick to principle that won't completely devastate the people…
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