It’s nice to find George Soros and myself on the same page….again. The EU is a basket case and a bad idea. I have been a proponent, for quite a while, that Germany should have said Auf Wiedersehen to the EU and Euro a long time ago. They could have gone back to the Deutsche Mark and watch their economy skyrocket. Instead, they are supporting socialist French, flamboyant Italians, forever fiesta Spaniards and we are never going to pay you back Greeks. With cultural differences going back thousands of years, I very much doubt that the EU will be able to survive over the next 20 years. If German people wise up, they will be the first out of the door.

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George Soros: Germany Is Stupid For Staying In The EU and Euro Google

Soros: ‘EU fulfilling my worst expectations’

Germany should have quit the euro zone to help boost its indebted counterparts in the currency union, according to billionaire investor George Soros, who discussed the future of Europe at an event in London on Wednesday. The exit of Europe’s largest economy from the 18-country currency bloc would likely have weakened the euro (Exchange:EUR=), potentially helping the region’s struggling economies to recover from the recent sovereign debt crisis. (Read more:Russia’s Putin acting out of weakness: Soros )

With regards to Germany’s decision to remain in the zone, Soros said: “This has fulfilled my worst expectations.” Before German elections last year, Soros said he was an advocate of the country leaving the single currency. This, he said, would have created a difficult but “quick fix” that would have allowed the region to rebalance. Now the chances of this happening are almost none, he added, saying Europe will likely face a prolonged period of painful readjustment and stagnation.

“(This is) endangering the European Union from what it is meant to be, namely a voluntary association,” he said. “(It’s changed into) something that is radically different, into a creditor debtor relationship.” He added that as a result the European Union (EU) now has two-tiers – or two classes – of members. “Currently the power is in the hands of the creditors,” he said with Germany’s government holding most of that power.

A crisis of ignorance Soros viewed the euro zone crisis as “a crisis of ignorance” – a very complicated situation which neither markets nor government authorities had fully understood. There was some optimism on the Union though.

Soros said a new public debate was now beginning. “The understanding of the issues is now catching up with reality…it gives me hope,” he said. Following the global financial crash of 2008, a sovereign debt crisis raged across the continent in 2011 with bailouts needed for several euro zone nations. Austerity followed with tough fiscal tightening required of some of the more indebted countries.

Despite opposition and a rise in fringe politics, the underlying fundamental data in many euro zone countries have improved. These flickering signs of growth have helped the bloc manage to exit a prolonged recession. Meanwhile, the euro has strengthened significantly – since the middle of 2012, it has risen around 13 percent against the dollar.

Soros also criticized Germany’s leadership, saying that it should never insist on austerity policies in a deflationary environment. ‘QE saved the world’ His comments follow the launch of his book “The Tragedy of the European Union,” in which Soros questions whether it is too late to preserve the EU. If the 28-country economic and political union collapsed, the effects would be felt way beyond Europe, according to a press release on Thursday, with “serious economic and political consequences” for both the U.S. and the rest of the world. (Read more: Why Soros and Paulson’s bet on Spain could pay off )

The founder of Soros Fund Management called on European politicians to react to these “unusual circumstances” quickly – and not to cling to old rules for the union that have proved inadequate. He heaped praise on the U.S. Federal’s Reserve’s quantitative easing program (QE), which saw it buy up bonds to lower interest rates and boost money supply.

“Quantitative easing has saved the world from a repeat of The Great Depression,” he added. With regards to the ongoing trouble in Ukraine, Soros stressed that it should be a “wake-up call” to the EU that “people are willing to sacrifice their lives to move closer to Europe.” Gun battles between police and protesters last month resulted in the ousting of former president Viktor Yanukovich but also claimed many lives. -By CNBC.com’s

George Soros, the billionaire investor, has warned that little has changed since the 2008 crisis in the ‘parasite’ banking sector

George Soros, the billionaire investor, believes the banking sector is a “parasite” holding back the economic recovery and an “incestuous” relationship with regulators means little has been done to resolve the issues behind the 2008 crisis.

“The banking sector is acting as a parasite on the real economy,” Mr Soros said in his new book “The Tragedy of the European Union”.

“The profitability of the finance industry has been excessive. For a while 35pc of all corporate profits in the United Kingdom and the United States came from the financial sector. That’s absurd.”

Mr Soros outlined how the problems that caused the Eurozone economic crisis remain largely unresolved.

“Very little has been done to correct the excess leverage in the European banking system. The equity in the banks relative to their balance sheets is wafer thin, and that makes them very vulnerable.

“The issue of “too big to fail” has not been solved at all.”

The proposed solution of a European banking union does not address the underlying problems, Mr Soros adds.

“A real danger to the financial system is the incestuous relationship between national authorities and bank managements. France in particular is famous for its inspecteurs de finance, who end up running its major banks. Germany has its Landesbanken and Spain its caixas, which have unhealthy connections with provincial politicians.”

In his new book Mr Soros outlines, in a series of interviews with Dr. Gregor Peter Schmitz, how he believes the European Union is in danger of becoming a thing of the past unless its flawed structure is reformed.

The German economy at the regions heart could also be its biggest weakness.

“What was successful in Germany before the crisis will not be successful as a prescription for the rest of Europe in the years ahead.

“In German the word Schuld has a double meaning (both “blame” and “debt”). So it is natural (selbstverstandlich) to blame the debtor countries for their own misfortunes,

“Germany’s tone, is sometimes self-righteous and even hypocritical…. In 2003 Germany was among the first countries to break the eurozone rules. ”

The prospect of Germany leaving the eurozone is very real and it would have serious implications as the euro would depreciate sharply and deutsche mark would go through the roof, Germany would find out how painful it is to have an overvalued currency.

Mr Soros, who famously “broke the Bank of England” by betting against the pound during the 1992 sterling crash, talks candidly about his most successful trade.

“I have a clean conscience. The big events in which I participated would have occurred sooner or later, whether I speculated on them or not.”