Skip to comments.Germany Is Already Printing Money - Deutsche Marks
Posted on 10/26/2011 11:17:46 AM PDT by little jeremiah
By now everyone realizes that the euro is in major trouble and will no longer exist in its current form for much longer. However, the common view is that it is Greece and possibly other PIIGS countries who will be forced out if the eurozone is broken up.
But few are talking about another possibility- of Germany leaving the EU.
One who is talking about this is Dr. Pippa Malmgren, a former economic advisor to George W. Bush and a former advisor to Deutsche Bank (DB). According to Malmgren, Germany has already ordered the printing of Deutsche Marks in anticipation of a possible withdrawal from the EU.
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We also have reports of Sarkozy and Merkel screaming at each other in recent meetings. France has announced plans to possibly nationalize several banks just in case. And Germany has dropped more than a few hints that its fed up with the situation.
Heck, even mainstream thinkers like Alan Greenspan says the euro is doomed to fail.
Something very bad is brewing behind the scenes. The Sarkozy- Merkel talks, the short-selling bans, the halted stocks, the leveraged EFSF, the hints of QE 3, all of this is telling us that the financial system is on DEFCON 1 Red Alert.
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So if you have not already taken steps to prepare for systemic failure, you should do so now. Were literally at most a few months, and very likely just a few weeks, from Europes banks imploding.
(Excerpt) Read more at seekingalpha.com ...
Pinging a few of you, it’s worth it to read the whole article which is pretty short. The euro collapsing will without doubt have huge effects here; of course I have little to no idea what exactly, but no doubt many here will have good comments to make about this.
I wouldn't mind having some newly minted silver DMs to go with my eagles and rubles.
If Germany pulls out, the Euro and the EU is history. The German taxpayers don’t want to foot the bill for the largesse of the PIIGS...........
I’ll start worrying if they start printing Reichsmarks.
Wall Street still seems to think the Euro is going to make it. It is still worth over $1.30. I would imagine if crash was imminent, it would be worth less than the dollar. My guess is they are able to punt the football a few more times and eventually it will lead to popular uprisings and beheadings.
Didn’t they do that post-WWI? It got them into big trouble then.
Germany is not printing Deutschmarks.
Germany printed tonnes of Deutschmarks at reunification as an insurance measure: they never quite got round to destroying them.
It makes loads of sense of them to revert to the DM. But I bet there’s something I’m just not seeing as to why they won’t.
The EU is doomed and so is the concept of a global currency. Deadbeat, lazy countries will always drag the producers down. This is going to be a good thing down the road to have this whole thing fail.
Link to Pippa’s site covering this topic.
If Germany pulls out the rest will probably collapse unless they become one giant Belgium. The Horrors.
I don’t know about the reliability of the news source, but it’s a fascinating development if true.
SO where is the safe place to put your money? Or better yet make money of this mess?
I hear Mars has potential.
Statists, leftists, idealists will hold on to their sinking ship and reassure themselves that it will somehow work. Look at North Korea, that utopia whose dictators and Generals still believe in! The Eurolandiers have already given up on the very notion of national sovereignty and refuse to believe they were wrong.
That is why they won’t until the ideological wall falls.
When will the Netherlands follow suit? Bring back the Guilder.
I shouldn’t joke, this looks terrible. The Euro was a another good intended bad idea..
It’s the old “Whoever dies with the most debt wins” mentality
Can't say I blame them!
Can you give us some best and worst case scenarios? 1. Euro declared worthless 2. US markest react by doing X 3. ? 4?
Everything goes OK, scenario A. Euro disolves in orderly fashion. B.? Small uptick in Gold prices C. Germany and GB remain relativly stable? D. Greece and PIGS move to hyperinflation? Deflation? currency collapse C. Then stabalize by following the steps of say Argentina or such?
Yeah, socialism is like that.
When it comes to the economy, Germany is Europe. German engineering will always keep it at the forefront among Europe’s eurosocialists. And I think that they are coming to realize that their little foray into European collectivism has left them worse for the wear.Human instinct for survival and to shed the burden of supporting those that do not contribute to their national economic well being will eventually drive them back to the mark.
When it moves, it is going to move in microseconds. It will be far too fast for the average chump to save themselves.
Or a hole in the universe the size of Belgium...
Me too. I never trusted the Euro, but would happily put my money in D-marks.
I think Germany would see investment flooding in if they disconnected themselves from the Euro.
Another triumph for centralization, statism, eliteism, and the Euros being the smartest people on the planet...
How does one short the Euro and make a fortune when it does move?
The EU has been a bust
“Ill start worrying if they start printing Reichsmarks.”
You mean Richsmarks?
That is my read on it. Don't think the Euro is going to collapse anytime soon. The market obviously doesn't think so. Europe can keep punting for awhile. They will keep kicking the can down the road, hoping against hope that economies turn around and the financial picture improves.
It'll all blow up at some point and the more Europe bails out banks, the more the public will think banks are the problem rather than out of control government spending. Europeans have basically learned nothing so far, and I don't really expect them to. They want to continue leaving way above their means, and no amount of reason and logic seems to sink in. We are seeing the same thing in this country. This is one of the reasons why banks MUST be allowed to fail. If during the financial crisis banks were allowed to collapse, the public would have traced the finger back to government policy and more of people would have reached the right conclusions.
“How does one short the Euro and make a fortune when it does move?”
Simple. Just open an online forex account with an online forex broker, click on Euro and click sell. The only thing is you will be shorting it against the dollar. Sick and sicker.But everything is relative. I shorted the Euro but against the Canadian dollar to avoid the hassle of the US deficit and debt crisis.
“You mean Richsmarks?”
What if the whole universe shrinks down to nothing but Belgium??
In currency futures but virtually all amateurs get wiped out before making significant coin.
EU, a bad idea whose time has gone: One state for about 20 separate, fractious peoples. Now to clean up the aftermath.
The whipsawa will kill you.
The krauts hold the majority of euro debt, if they walk away from the Euro, it will fall like a rock and the Germans will lose about 40% of their collective net worth.
In addition, since they have no real army, it does germany little good to be prosperous when their neighbors are broke.
Those borders are porous.
Big bang theory?
Oct 26, 11:32 AM EDT
Euro plunges on reported crisis talk deadlock
By DANIEL WAGNER
WASHINGTON (AP) — The euro is plunging against other currencies after European leaders and banks appeared deadlocked over how much of Greece’s debt should be forgiven.
European leaders are meeting in Brussels Wednesday about efforts to prop up banks, bail out Greece and prevent the debt crisis from spreading. Last week, they promised a detailed plan by Wednesday. That looks increasingly unlikely.
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By Valentina Pop
Brussels - Peace should not be taken for granted if the euro fails, German chancellor Merkel told MPs Wednesday (26 October) ahead of the eurozone summit where an increase of the bail-out fund firepower may lead to Germany’s own state assets being taken as collateral.
“Nobody should take for granted another 50 years of peace and prosperity in Europe. They are not for granted. That’s why I say: If the euro fails, Europe fails,” Merkel said, followed by a long applause from all political groups.
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Is it Bush’s/Israel’s/Sara Palin’s/Tea partiers’ fault yet?
I posted the article and the other two (snips of course) hoping more financially astute people would know what it all means.
Personally I have no clue other than the Eurozone and Euro money is doomed of course, how soon I don’t know; nor do I know what it means for us in the US. Hope I’ll learn something by checking back today and reading peoples’ comments.
Remember that valuation is relative. The dollar and euro are in a years long race to see which can lose value the fastest.
Politicians all over the world love a weak currency policy because it means they can spend money they don't have to buy votes.
I don’t worry about that stuff because I don’t have any money.
I remember that relatively high Dollar and low D-Mark period well. Had a lot of distributors adding German lines equivalent (hand and power tools - they were better quality, to be honest) to our US products to take advantage. At that time (mid 80’s) the DM/$ exchange rate was hovering around 3 to 1. If they re-launch the D-Mark it might start out at par or better. Welcome to Interesting Times.
You are absolutely correct. Our US crash was primarily from a real estate bubble that everyone contributed to including the public, banks, government and not from government spending. The Euro crash will be from government spending funding social welfare systems no productive society can afford. And the Eurosocialist gimme stuff populus are out in the streets as usual blaming it on the banks when they should really be looking in the mirror at the real culprit.With Obama, we are not very far behind them.
Yes, the Germans would lose about 40% of their ON PAPER net worth, but how much of that Euro debt is actually collectable. The Germans may just decide to write off that 40% of their net worth to insure it does not become a 60% write off down the line.
Never know. There could be lot of big and little bangs when it all falls down.
Germany relies on a thriving export business of hard goods.
It also relies heavily on imports of raw materials.
The big three exporters are China, Germany and the U.S., in that order.
As the Euro declines in value relative to the dollar and yuan, being dragged down by all the less productive nations in the Eurozone, Euro-denominated German assets are losing value because of the currency devaluation.
If Germany changed back to the Deutschmark, allowing both currencies for a year or so and then phasing out the Euro, it’s currency would certainly hold it’s own very well relative to the yuan and dollar, perhaps outperforming both of them.
The other nations in the Eurozone would undoubtedly quickly follow suit, as the Euro would drop like a rock relative to other currencies. On the upside, this would make exports of those other countries a bit more attractive.
Each European nation then, most notably France, could do a one-shot money creation of their own currency, buying shares in and lending to their own major banks, possibly nationalizing them for a while, designed to make up for the haircut (expensing the loss) on poor-quality sovereign debt issued in Euros. It would not take very many Francs and the write off would be done and the problem would be over.
Each nation then would simply go back to taking care of itself. The less productive ones would have to adjust their living standards, but at least there would not be the myth and tension created by politicians making promises to other nations on behalf of their nation that their nation can’t or does not want to keep. Any government debt instruments or bonds that the individual nations then issued, going forward, would be evaluated by buyers of the debt solely on that each nation’s ability to generate tax revenue, not based on the vagaries of international political wrangling.
This just has to be sold politically in each European nation as the friendliest, most honest way out; hailed as a wonderful solution that will restore all of Europe to it’s historic wonderful tradition of excellence, etc.
If politicians can politically “sell” the idea of going into debt for centuries, they certainly should be able to politically “sell” the idea of getting debt paid off within a few years.
Aww, you’re so cute and funny.