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.
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visit:http://www.prnewswire.com/news-releases/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-300109521.html
SOURCE Forex Peace Army