Oracle - May 2003

                The Euro currency will fail by the year 2020.

                There has been much discussion of the rise of the Euro vs. the U.S. dollar in recent weeks. The Euro is at an all time high verses the dollar, which is partly due to the fact that the United States Federal Government is running massive deficits.

                However, my prediction is based on the fact that within 10 - 20 years, European governments everywhere will be facing massive new demands on 20th century government programs for the aging caused by the aging of their populations. This is not unique to Europe of course, as all economically advanced nations (including the United States) face this problem. However, the single currency will buckle when individual governments, hemmed in by the straitjackets of a single currency, will not be permitted to print money to cover their deficits. This will undermine the currency and the Euro experiment will fail - as all other such experiments in the past have failed.



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