One of our favorites, Felix Zulauf, joined Jim Puplava on his Financial Sense Newshour to discuss the global economy and ongoing European debt saga.
Zulauf said “the euro was probably the dumbest economic decision Europe has made since World War II, but we have it and it’s very difficult to get out of it.”
He added that, sadly, quantitative easing has become a way of life in the developed world:
Well, Jim, we live in a world and it’s not just in Europe, it’s actually true for most of the developed world, we live in a world where central banks print money to save and rescue the banking system that is under-capitalized and underwater — or not sound, at least — and that the banking system can then finance the government that is insolvent and the government then guarantees the banks. That’s the situation we are in. It’s a funny game, but it is sad what’s going on. Of course, what the ECB does is quantitative easing. Of course it is. And it is not the last set. I expect that to continue for many years because there is no way out of this. We live in a world where we print money just that we can afford the life, but live the life we cannot pay for ourselves. And somehow this is not a formula for sustainable prosperity and success.
This is part one of a two-part interview, the latter of which will be released tomorrow. You can listen to Zulauf’s interview (and read the full transcript) at FinancialSense.com.
Hat tip JL for the immediate text message right after this interview was released!