Soros says Germany could cause euro collapse

The Euro is acting like gold is the Great Depression. The US could not devalue the U.S. dollar under the gold standard. Gold was confiscated and revalued, against the wishes of nearly all central bankers at the time, in order to devalue the U.S. dollar.

The Euro, defined by its construction, is acting like gold in the Great Depression. It is forcing austerity and preventing the Euro from devaluing. As a result, Germany begins to export deflation to it trading partners. Which in turn, exports deflation to the US and countries pegged to the U.S. dollar (i.e. China).

Would Germany be responsible for destroying the Euro Zone? As long as the Euro maintains austerity rather than infinite quantitative easing (QE), tension and the blame game will continue to rise. It will be these forces that will tear the Euro zone apart regardless of who carries the label of blame.

"German policy is a danger for Europe, it could destroy the European project," said Soros, who earned $1 billion in 1992 by betting against the British pound.

Source: finance.yahoo.com