'Don't Write Off The Euro'

Finance and Trade
02/08/2015 08:30

While many have been rushing to write off the euro, given the sovereign debt problems affecting several members of the eurozone in recent years and the ongoing turmoil regarding Greece, a leading analyst, Peter Schiff, points out that the single currency has survived for 16 years despite claims on many occasions that it would sink.
"Confidence is the only thing that really undergirds modern fiat currencies. But confidence can be very ephemeral…disappearing as quickly as it arrives. The U.S. dollar benefits from confidence that the euro currency may just be unworkable, that the U.S. economy will continue to improve, and that the Fed will raise rates throughout the remainder of 2015 and into 2016. If these expectations are unfulfilled, there could be a euro reversal [rebound]," says Schiff.