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by Beverly Chandler, Opalesque London:
A paper entitled An Academic Review Behind the Rationale for the Creation of the Euro published by Beijing-based Acacia Capital Management, spells out the extreme cost and chaos a departure of a currency from the Euro would cause.
Luke R. Diaz, partner and director of investor relations at the firm and Ryan Weidenmiller, author of the review, both point out that Europe has been here before with the Euro with the Latin Monetary Union of 1865 which collapsed, ironically enough, because of the activities of Italy. Diaz says: "Those who can not remember the past, as the old saying goes, are condemned to repeat it".
Weidenmiller says: "We
still
think
the
current
European
monetary
experiment
(in
its
current
form)
is
likely
to
fail
as
it
did
in
the
late
1800’s
/
early
1900’s,
i.e.
the
Latin
Monetary
Union".
"We
are
executing
our
strategy
in
light
of
this
belief."
Weidenmiller also quotes UBS, who appears to agree with him. "Under the current structure, and with the current membership, the Euro does not work." The UBS report estimates that the
cost
of
a
weaker
country
leaving
the
European
Union would be
roughly
40-50%
of
GDP
in
the
first
year
with
considerable
costs
thereafter.
Weidenmiller says: "While
we
have
been
negative
on
the
outlook
for
Europe,
and
have
called
for
a
potential
restructuring
of
the
Euro
for
quite
some
time,
these
cost
estimates
cited
by
UBS
to
restructure
the
Euro
are
considerable
and
would
likely
hav...................... To view our full article Click here
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