From CNBC:
Faced with “almost terminal problems,” Dennis Gartman on Monday said the euro could soon unravel.
“Eventually, the euro breaks apart into a northern euro and a southern euro,” said Gartman, explaining that the Continent’s many languages, religions and cultures are too diverse for the singular currency to work.
Gartman said he thinks Europe’s debt troubles won’t stop with Ireland’s bailout and mounting concerns in Spain and Portugal. He thinks it’s a “rolling contagion from one country to the next,” which will likely claim Belgium next…
Once again, too much debt chasing too little wealth. It is debt which can never be repaid. And I mean, never. Unless, that is, the Europeans are re-converted back to Christianity and start living lives of sobriety, hard work and thrift…and start having babies. Simply put, even if the economy recovers, there simply won’t be enough Europeans to pay off the debt – their population is in decline as each European woman, on average, only has a bit more than 1 child. You need a slight bit more than two children per woman just to keep population stable…
In the end, I expect that Europe will die, and then be reborn. Christians are all about that sort of thing – and the small Christian population of Europe will inherit the empty shell of post-Christian Europe, in the by and by. The meek really will inherit the earth, it seems. But that is some decades away, at the least. Meanwhile, Europe is bankrupt – and that bodes ill for the whole world.
If Europe does fly apart financially then the shock waves will roll around the world, eventually causing China and the United States to feel the pain…and perhaps tip both economies in to steep recession.
As I’ve been saying, a lot more interesting times coming our way.
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