The True Meaning of the Euro and Greek “No” Vote …

Larry Edelson

As I stated in last week’s column: “The Greek default is merely the opening act of the worst sovereign-debt crisis in history.”

And now that Greece has told European leaders to take a hike, the crisis will start spreading.

The consequences will unfold in a series of debt defaults, civil conflicts, social and financial upheavals and more.

It will spread — without a doubt — to the other peripheral economies of the European Union, namely Portugal, Spain and Italy.

Each one of them has unsustainable debts. Each and every one of them does not have the economic growth to support the debts.

Will the crisis that started with Greece spread to other EU peripheral economies?

Each and every one of them will eventually have to go the way of Greece, at first defaulting, then trying to stay in the euro, and then finally recognizing that it’s impossible to do so …

And that the only way out for their citizens and their economies is to leave the euro and take back their own currencies.

You see, when the euro got started, it contained the seeds of its own destruction.

For one thing, European leaders tried to put a one-size-fits-all hat on all of Europe, through a single currency. Nice idea, but it failed to recognize the many disparate languages, histories and cultures of Europe.

For another, it subjugated each country’s sovereign identity to the powers that be in Brussels and Germany, robbing them of their democracies, and enslaving them to the wishes of European leaders who were nothing more than power-hungry mongers back then, in 1999 … and are even more power hungry today, to try and keep the euro intact.

And for yet another, those European leaders who expected to unite the Continent from a political perspective to avoid Europe’s long history of wars, they are about to see the entire experiment backfire.

For in the end, Europe’s euro advocates tried to do what Hitler tried: Unite the Continent into one union, one country, one financial system.

Whereas Hitler tried it militarily, and no doubt, was the most insane man ever …

Europe’s euro masters thought they could unite Europe peacefully through economic might.

But they were wrong, dead wrong, and the crisis that is now unfolding is going to produce precisely the opposite:

A Europe financially war-torn because euro leaders like Angela Merkel think they can call all the shots … think they can enslave other countries and people with debt … and dictate everything to them, under threats of no new loans, no humanitarian help, no futures unless you comply with their wishes.

Well, now it’s unraveling, right before their eyes. The Greek “No” vote is the best thing that Greece could have done. Now, Greece has clout. Now, Greece has stood up for itself. Now, Greece can move forward. Now, Greece does indeed have a future.

But in the short-term, it’s not going to be pretty. For Greece, for other peripheral economies, for Europe as a whole.

Portugal will soon realize it can do the same and tell Merkel and Brussels to take a hike. Then Spain will jump into the fray. Then Italy, and more.

Protests and riots will spread. Civil conflict within nations between those who want to say yes to the euro and those who want to leave will erupt.

Conflict between the periphery and the core, namely Germany, will escalate.

The entire euro experiment will fail, violently.

And the entire process — as it unfolds over the months and years ahead — will turn everything you thought you knew about economics and financial markets, inside out and upside down.

What was once considered safe — like government bonds — will become the riskiest of investments …

While, on the flipside, what was once considered risky — like gold and precious metals, or even Greece’s stock market — will become the safest types of investments.

Mark my words: The crisis will change your life. It will threaten your finances like never before.

If you don’t have a handle on how the crisis will unfold, it will squash any chance you have at protecting and growing your wealth …

But if you do have a handle on it, not only will you be able to protect your wealth, you’ll be able to grow and multiply your wealth many times over.

My Real Wealth Report subscribers are not only tuned in to the crisis and what it means, they are and will always be prepared to protect their wealth and grow it as the crisis unfolds in the months and years ahead.

You can be too.

The first step is to educate yourself on how a crisis like this unfolded before.

For starters, I recommend reading Volumes II and III of President Herbert Hoover’s memoirs, available online for free via his presidential library.

Simply click on volumes II and III near the top of the page in his memoirs section to download the .pdf files.

Read them and pay particular attention to how he describes Europe’s sovereign debt crisis in the 1930s … and how capital darted back and forth around the globe “like a loose cannon on the deck of a ship in the middle of a torrent.”

It will open your eyes to how capital can move in times of crisis, and what kinds of investments are sought out, and why.

It’s the other side of the Great Depression that almost no one ever tells you about, yet is so very important for you to understand.

Your second step: Stay close in touch with my columns, and even better, consider joining my Real Wealth subscribers,
who, year-to-date, have handily beat the S&P 500 with a 13.3 percent return.

Best wishes, stay safe and stay tuned …

Larry

Larry Edelson, one of the world’s foremost experts on gold and precious metals, is the editor of Real Wealth Report and Supercycle Trader. Larry has called the ups and downs in the gold market time and again. As a result, he is often called upon by the media for his investing views. Larry has been featured on Bloomberg, Reuters and CNBC as well as The New York Times and New York Sun.

Comments 35

Jon July 8, 2015

Who else has underperformed the markets the last 5 yrs. u have Larry don't tout ur gains this year. Ur ppl who invested 100k 5 yrs ago are prob down to 60k so 13% gets them only down 30k now for the last 5 yrs

Damien (New York) July 8, 2015

Quite the opposite. I have been a member five years in August I have averaged 18% a year so far based on Larry's recommendation. He has time sensitive suggestions with tight stop losses. Limiting our down side risk. Got us in China two years ago ang got us out last month with dire warning. Made a killing on those picks. He always admits his faults unlike Kramer or whoever you get your info from. I suggest you sign up for a year it's very cheap then see what your opinion is

Bob July 8, 2015

Thanks for your enlightening insights.Could we be heading into the perfect storm, of climate ,energy and political economic instability?Looking forward to knowing when to make the moves to profit from the turmoil.

Manny July 8, 2015

Finally. I can taste it!

David S. July 8, 2015

Grow up.

KC July 8, 2015

Always brings a smile to read your comments. But also makes me feel sad, because I know what you are referring to, and remembering the cash I once had when it was said.

Mephisto July 8, 2015

It's Armstrong-lite. I've read it all before on his blog and in much better form. Does Larry have no shame ?

David July 8, 2015

Larry is a long time friend of Martin Armstrong, and I would be surprised if his views were not similar.

Mephisto July 8, 2015

But he passes it off as his off thoughts and doesn't get the actual mechanisms underlying what's happening.

King July 15, 2015

We are all adults and do not need you to nanny us around.

$1,000 gold July 8, 2015

every country needs their own currency and own central bank to regulate their own economy. now way we'll ever see a world currency. never, ever will that happen.

Bob July 8, 2015

Email me money&markets news letters

randy July 8, 2015

greece nor no other euroland country will ever leave euroland. euroland will not crumble until it's time for the totalitarian west to be instituted upon the start of wwiii when russia/china nukes ameriKa and europe. the one thing edel...er, armstrong cannot get through his head is there are powers beholden to satan who run this world and they will not allow the european union to fold until the time is ready. it's just that plain and simple...WAKE UP!

Folly July 8, 2015

Greece liquidity crisis, the Shanghai index crashes 32% in 4 weeks and yet gold remains at a low of $1158 (comex). The sums don't add up.

were July 9, 2015

Yes. Yes, they do. You are just using the wrong system to hang your assumptions on.

mike July 9, 2015

Hi were, do you have any updates on your gold prediction pls?

$1,000 gold July 9, 2015

folly, gold responds favorably to stimulus from the fed. so long as the fed remains in tightening mode we can expect gold to continue its downward journey. it will be interesting to see how much the coming rate hikes punish gold. a reversal in policy by the fed, which is possible if the economy falters, would reverse the decline of gold due to more easing. simply put: easing, gold goes up. tightening, gold goes down. watch the fed and you'll know what gold is going to do.

randy July 9, 2015

say edelson, how's that chinese miracle working out for ya'??

$1,000 gold July 10, 2015

larry is right about the chinese miracle. but first, it's a sure sign of a bubble when the working class enters the market in droves like just happened in china, and like happened here in america in 2008. when these bubbles pop, they usually go all the way to a bottom, so china should enter its secular bull when the dust settles. that could be awhile, though.

King July 15, 2015

Say randy, take a hike.

$1,000 gold July 9, 2015

tightening by the fed strengthens the dollar. a stronger currency makes commodities appear cheaper. i'd expect all commodities, including metals and oil, to go down and stay down in price in the months and years ahead as the fed embarks on it's tightening policy. i think we'll see lower gas prices at the pump by years end, and crude oil under $100/bbl for years to come. hence: a good economy for the usa.

tiffany July 9, 2015

Gee $1000 gold..........I never new that...... It sounds like you know alot Maybe you should write a newsletter.... Where is the stock market going then Where is real estate going........Everyone says to buy now cause interest rates may go up Should i sell my house Where should i invest...I am so confused Tiff

$1,000 gold July 10, 2015

i'm just an amateur. don't listen to me. but the pros get it wrong so often i can see why you're confused.

were July 10, 2015

Thanks for asking. I wanted to wait until mid July for confirmation but I’ll give you my thoughts now. We have most likely seen the high for the year in all markets. There is a chance that mid July might see some new highs – but only a slim chance. It’s down from here though – major slide by end Sep/mid Oct. But that isn’t the final low for commodities – that’s early 2016.

Magoo July 10, 2015

Thanks, were. At some point please share with us where you think the lows will be for the major markets - Dow, oil, gold, etc. I know it's too early to tell now. But now may be time to seriously look at inverse ETF's. thanks

were July 11, 2015

I did not post this here. someone is pretending to be me.

Mephisto July 12, 2015

$1000gold is up to his childish tricks again ?

greg July 10, 2015

Here, writing from merry old England where things are running perfectly according to our wonderful Chancellor of the Exchequer, George Osbourne, I believe the rest of the World is in a mess and maybe the rest of the World needs to seriously consider taking a leaf out of England's book on how to successfully run a bloody economy.

palcau ioan July 11, 2015

there will be no exit of Greece,they did that ,,referrendum,, for nothing...Tsipras accepted 53 or 55 billions euro...the austerity is now more devilish like never before! its another humiliation for the greeks...the show must go on,just wondering how long...peace n prosperity for yall!

Will July 11, 2015

Getting back to Greece: they can vote "no" all they want; the Banker's Golden Rule reads HE WHO HAS THE GOLD MAKES THE RULES

King July 15, 2015

Are you a goldbug? That saying is so damn wrong.

Rc July 11, 2015

Attach your wagon to a falling star and you will end up in the mud.......

Will July 11, 2015

There is far too much emphasis placed on the euro, and not enough placed on the European Union. The real failed concept is the EU. Unlike the AU (American Union) each member in the EU tries to remain a separate country. Can you imagine the European reaction should each American State want to have representation with corresponding vote in the UN, IMF, WB, WTO, WHO, etc. The EU wants to be heard as one voice when it suits them and as many voices when it suits them. If the EU goal was to establish peace, this should have been provided by treaty between the sovereign states. By forming the EU the concept of sovereign states was muddled to an unsustainable degree. The only problem with the euro is that it is a part of the EU.

HYMN July 11, 2015

Buy China while it's cheap. Why?: AIIB,Brics,SGE,Shanghai free trade zone, SGE bullion bank(soon) member of the reserve currency basket(soon) big deals with Russia regarding their yet untapped natural resources,Chinas yet untapped natural resources,buying any and all of everyone elses resources,put money in India,so.Africa infrastructure, Silk highway project, new SWIFT (soon) etc. etc. etc.

Rc July 11, 2015

Yes ....FXI- buy- buy- buy.