cnbc anchor freaked out by fabers comments , page-9

Agree! Here is what Milton Friedman predicted on the euro...


Milton Friedman and the Euro
by Scott Boyd, 02/03/2009

Milton Friedman never found it necessary to hide his feelings with regards to the creation of the Eurozone and the euro currency; he didnt like it and he felt that it was unlikely to survive a serious economic test. In the year leading up to the launch of the euro in 1999, Friedman stated that he did not believe the Eurozone could last ten years and even as late as December 2005 - less than one year before he died at 94 years of age. Friedman was still very pessimistic:

"The euro is going to be a big source of problems, not a source of help. The euro has no precedent. To the best of my knowledge, there has never been a monetary union, putting out a fiat currency, composed of independent states. There have been unions based on gold or silver, but not on fiat money - money tempted to inflate put out by politically independent entities."


It has been ten years since the euro became a reality and the Euro Zone, like the rest of the world, is truly in the midst of a deep recession. It would seem that if Friedman's predictions were to come true, now is the time.

Click here.