CEO of Forex Peace Army Dmitri Chavkerov│Greek Referendum May Lead To Global Financial Collapse and Depression
Greek Referendum And Eventual Grexit Are Likely To Lead To Global Financial Collapse and 20-year Depression in Both Europe and the US Says CEO of Forex Peace Army Dmitri Chavkerov
NORTH PORT, Fla., July 7, 2015 /PRNewswire/ — On July 5th of 2015, Greeks voted “NO” on the proposed bailout program by the Euro Zone, which increased the likelihood of a Greek exit from the Euro Zone, also known as “Grexit”, and while many financial analysts say that “Grexit” is already priced in by the markets, Dmitri Chavkerov, CEO of world’s largest forex reviews website Forex Peace Army, thinks quite differently.
“First of all, just because Greeks voted ‘NO’ doesn’t mean that Grexit will occur. Having said that, if Grexit does occur, all eyes will be on Greece, in terms of how deep of a turmoil it will go into, for how long will it stay in turmoil, and how much better life becomes for the average citizen there after it comes out of turmoil,” says Dmitri Chavkerov.
“Considering that Greece will be debt free, while the Euro Zone would be left to deal with Greek’s debt burden, and considering that both China and Russia might just lend Greece a hand, due to current standoff between Russia and the US, plus with Greeks being likely to be happy about the Grexit, and united in their efforts to restructure Greece’s economy, the turmoil might just be not as deep, and the recovery might just not last as long as the world would expect it to last. And if Greece has a relatively happy ending, the other countries in the EU that have strong anti-EU sentiment and significant debt burdens, such as Italy, Spain, Portugal, and eventually even France might just follow into Greece’s footsteps, which would collapse the Euro Zone, and end the Euro currency,” says Chavkerov.
Dmitri Chavkerov also shares a quite unorthodox and pessimistic view that the current unrest in the Euro Zone and the likely eventual collapse of the Euro is likely to lead not only to depression in Europe, but also the economic collapse and depression in the United States as well.
“US is a great country, and I personally enjoy my life in the United States, but when I stop, think, and research why life in the United States is so good, I can’t help but constantly come up to the exact same conclusion: US uses its good faith to issue debt with interest, it then invests this borrowed money into its military, government expenses, subsidies to food producers, social programs, etc, then it collects taxes from its economy, pays some of the interest on its debt with this tax money, only to issue yet more debt with interest, and repeat the cycle,” says Dmitri Chavkerov.
“Because the US government provides subsidies to farmers, the food for average American is much cheaper than it’s supposed to be. Because the US government gives free money to the poor people, and keeps taxes relatively low for everyone else, people have money to invest back into the economy, supporting local businesses, etc. The problem is that whatever money US makes from taxes and other sources is a lot less than the money it needs to pump into the economy to sustain it. The moment it tries to create surplus by raising taxes, and cutting subsidies and social programs, its economic life will collapse,” he says.
“My personal opinion is that the US will continue to do this for as long it can, until the rest of the world loses faith in its financial viability, and decides to act on this lack of faith, at which point the US will suddenly default on its debts, just like it suddenly abandoned the gold standard, and will simply start over as Greece would if Grexit occurred. This will provide very sudden but very necessary economic deleveraging, and inevitably cause a temporary, 20-year or so, economic dip, which economists call Depression, but because US has such strong fundamentals, such as biggest military, biggest gold reserve, solid government infrastructure, and highly skilled, patriotic, and law abiding citizens, the country will bounce back up quickly, and regain everything it lost during the deleveraging period,” says Chavkerov.
“I personally find it ironic that Greece was at the root of the collapse of the enslaving and highly unsustainable Persian Empire with the Persian war against Sparta, and later Alexander the Great’s conquest of most of the known world, and now Greece again is likely to act at the root of the collapse of highly unsustainable and debt-driven global financial system,” concludes Dmitri Chavkerov.
SOURCE Forex Peace Army