John Taylor, founder and CEO of the world’s largest currency hedge fund FX Concepts, spoke with Bloomberg TV’s Sara Eisen and said that Draghi’s promise to do what’s needed to preserve the euro will result in a weaker currency as the ECB prints more money than its counterparts. He said that Europe’s crisis is in the “second or third inning…it’s in the beginning. You’ve got a long way to go.”
Taylor went on to say that Germany has to “realize that every time they sell a Mercedes to somewhere in southern Europe they’re only borrowing German money to do it and they are never going to pay for that Mercedes. Either Germany has got to write off the Mercedes because they won’t ever pay for it, or Germany shouldn’t sell that Mercedes. But they don’t want to admit that.”
