November 30, 2016
Italy's referendum will COLLAPSE EURO - chilling warning from investor who forecast Brexit
AN INVESTOR who correctly predicted Britain would leave the European Union (EU) before the referendum has now forecasted the euro will collapse.
By Jon Rogers
express.co.uk
Jim Mellon, the Chairman of the Burnbrae Group, has warned the currency will become a victim in the growing anti-establishment surge which will cause the EU to fracture - all within five years.
He said: “Brexit is going to be a sideshow to the problems of Europe that are becoming more and more evident.
“The euro as it stands at the moment is just a very inappropriate mechanism — I give the euro between one and five years of life.”
The UK’s recent Brexit vote, along with Donald Trump's election as US President, has signalled a sea-change in global politics and populist movements around the world have gathered pace.
Italy’s referendum vote at the weekend, as well as France’s presidential election next year, could also see upsets at the ballot box, giving currency traders cause for concern and initiating a run on the euro.
Last week, the euro dropped to $1.0518, it’s lowest point since March 2015 and Mr Mellon expects the currency to fall further, reaching parity to the dollar “sometime over the next year”.
Italy’s dire economic situation - with high unemployment and a crumbling financial sector - has caused Mr Mellon to sell Italian government bonds.
Last week, the euro dropped to $1.0518, it’s lowest point since March 2015 and Mr Mellon expects the currency to fall further, reaching parity to the dollar “sometime over the next year”.
Italy’s dire economic situation - with high unemployment and a crumbling financial sector - has caused Mr Mellon to sell Italian government bonds.
Before the EU vote he said that the pound could drop to as low as $1.32 following a Brexit.
The currency tumbled to as low as $1.1841 last month, and was at $1.25 on Monday.
Five months after Brexit, the outlook for sterling remains “pretty good” and “the worries about the sky falling” in aren’t materialising, according to Mellon.
http://www.express.co.uk/news/politics/737986/Brexit-Euro-collapse-Italy-referendum-investor-prediction
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
| 