If you think Greece is holding back the eurozone from an economic collapse, you may be mistaken. At least, that’s according to former hedge fund manager and Goldman Sachs alumnus Raoul Pal.
In an interview with CNBC’s Fast Money on July 31st, the publisher of the Global Macro Investor newsletter and the founder of Real Vision TV, said “Germany is the big exporting nation of Europe, and I see them slowing down.” (Source; CNBC, July 31, 2015.)
Pal said that a slowing global economy, weakening euro, and rising dollar could have a severe impact; particularly on Germany. The euro against other currencies has suffered substantially.
The ongoing crisis between Greece and its creditors has sent the euro to historic lows. Meanwhile, the U.S. dollar continues to soar prior to a historic interest rate hike by the Federal Reserve.
Unlike many economists who suggest Germany is the core of economic growth in the eurozone, Pal made a new bold prediction.
“I think Germany is at risk of leading Europe into a recession, which is against everybody else’s opinion.”
If Germany goes down, it could send the entire eurozone into a massive financial meltdown. If this happens, the euro collapse is inevitable.