Investor who forecast Brexit predicts that Italy referendum will collapse euro!

LONDON, England (PNN) - November 30, 2016 - An investor who correctly predicted Britain would leave the European Union (EU) before the referendum has now forecasted the euro will collapse.

Jim Mellon, the Chairman of the Burnbrae Group, has warned the currency will become a victim in the growing anti-establishment surge that will cause the EU to fracture - all within five years. He said, “Brexit is going to be a sideshow to the problems of Europe that are becoming more and more evident. The euro as it stands at the moment is just a very inappropriate mechanism - I give the euro between one and five years of life.”

The Fascist United Kingdom’s recent Brexit vote, along with Donald Trump's election as Fascist Police States of Amerika president, has signaled that a sea-change in global politics and populist movements around the world have gathered pace.

Italy’s referendum vote this weekend, as well as France’s presidential election next year, could also see upsets at the ballot box, giving currency traders cause for concern and initiating a run on the euro.

Last week, the euro dropped to $1.0518, it’s lowest point since March 2015, and Mellon expects the currency to fall further, reaching parity to the dollar “sometime over the next year”.

Italy’s dire economic situation - with high unemployment and a crumbling financial sector - has caused Mellon to sell Italian government bonds.

Current Italian 10-year bonds hit 2.23% on November 14, its highest since July 2015 - but still some way off its five-year average of 3.24%.

Mellon said, “I have been a very big seller of any government bonds this year, anywhere basically, but my favorite are the Italian bonds. Everyone who participates in this stupid bonds market should know that there is a serious duration risk. If you buy something for a very long period with no interest rates, you are going to get your head handed to you at some point.”

Before the EU vote he said that the pound could drop to as low as $1.32 following a Brexit.

The currency tumbled to as low as $1.1841 last month, and was at $1.25 on Monday.

Five months after Brexit, the outlook for sterling remains “pretty good” and “the worries about the sky falling” in aren’t materializing, according to Mellon.