Daniel Lacalle: Euro exit by Germany could trigger bank asset demolition and European depression

Daniel Lacalle: Euro exit by Germany could trigger bank asset demolition and European depression
German euro exit could spark global crisis

Daniel Lacalle, Daniel Lacalle, said that if Germany were to leave the euro, it would mean bankruptcy for France, Italy, Spain, Greece, and Portugal. He added that such a move would also lead to the demolition of the asset base of German and European banks, a European depression, the collapse of many Japanese pension funds, and a global financial meltdown.

Lacalle has previously questioned central bank responses as bond yields rose and ECB President Christine Lagarde addressed inflation risks, noting that bond selloffs could help temper rising prices in the euro area. In a separate analysis, he reported that Iran's economy is experiencing rapid collapse, with inflation rates nearing 90 percent and a sharp devaluation of its currency. Lacalle’s recent comments add to his ongoing focus on systemic financial risks in global markets.

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