Skip to comments.Germany drawing up plans for Greece to leave the euro
Posted on 02/18/2012 5:33:00 PM PST by bruinbirdman
Plans for Greece to default, potentially leaving the euro, have been drafted in Germany as the European Union begins to face up to the fact that Greek debt is spiralling out of control - with or without a second bailout.
The German finance ministry is actively pushing for Greece to declare itself bankrupt and to agree a "haircut" on the bulk of its debts held by banks, a move that would be classed as a default by financial markets.
Eurozone finance ministers meet on Monday to approve the next tranche of loans from the EU and the International Monetary Fund, designed to stave off national bankruptcy while the new Greek government puts the country's finances in order.
But the severe austerity measures being demanded have caused such fury in Greece, and the cuts required are so deep, that Wolfgang Schäuble, the German finance minister, does not believe that any government would be able to implement them.
His pessimism has been tipped into despair with a secret European Commission, Central and IMF report that even if Greece made good on its promises, it would not be enough to reach the target of bringing total debt to 120 per cent of GDP by 2020.
"He just thinks the Greeks cannot do what needs to be done. And even if by some miracle they did what has been promised, he - and a growing group - are convinced it will not pull Greece out the hole," said a eurozone official.
"The idea instead is that the Greek government should officially declare itself bankrupt and begin negotiating an even bigger cut with its creditors. For Schäuble, it is more a question of when, not if."
The German finance minister's comments are certain to plunge the authorities in Athens into even deeper
(Excerpt) Read more at telegraph.co.uk ...
I tried to figure that one out too:?
Even with the inflows of money out of euro-denominated assets, interest rates wouldn't stay down where they are if the fed wasn't buying up all the debt that the public won't buy at current rates.
Well, the theory seems to be, if somebody yanks a trillion or so out of the DAX, and puts it into the US stocks, it will then cause US stocks to tank.
Are these people on drugs, or dog food?
Yeah...I would have thought the opposite would occur...flight to safety and all that.
Eh, economists. Who can understand them.
“Well, the theory seems to be, if somebody yanks a trillion or so out of the DAX, and puts it into the US stocks, it will then cause US stocks to tank.
Are these people on drugs, or dog food?”
Nah, I think they’re on LSD.
But I did like the last paragraph of the linked article:
“There have been false alarms in the past, and we wont deny that this may be one of them. But were of the view that when a smoke alarm goes off, we evacuate first and substantiate it once were out of harms way. The alternative is that you end up trapped in a burning building.”
We may ALL end up, figuratively speaking, trapped in a burning building -— led there by Obama and the other statists in the ruling elite.
So now Deutschland would prefer Greece is booted out of Europe basically.
While Turkey is in NATO.
OK. Turkey stronger. Greece kicked out of the Euro. German central control, anyone else just a tiny bit leery where this is heading?
“We may ALL end up, figuratively speaking, trapped in a burning building - led there by Obama and the other statists in the ruling elite.”
That is true.
No, not really. The germans are quite peacefull when they rally.
When they start to march - well, that is something to behold.
Obama did not start sending American factories to China.
Let’s be honest about at least part of the problem.
Not a liberal problem. That’s one, which is firmly owned and the fault of, those who abuse the ideas of Ayn Rand to justify firing Americans and closing our factories.
Let’s please not pretend otherwise.
America first. At long last.
Heck of a segue you had there - I had to re-read the thread, to figure out what you were on about.
Yes and no - outsourcing is not really an outcome of taxation, or low wages - it is an intended outcome of the EPA. Blame Nixon.
There’s never a thread in my opinion, not to point out America is stupidly giving away our national industry and greatness.
Thanks for changing gears. :D
The reference was to dollar denominated equities. These would be EUrotopia equities with ADRs (American Deposit Receipts) on the U.S. exchanges, like Siemens AG (NYSE: SI).
A “haircut,” meaning Germany is forgiving Greece’s debt. Yet clown journalists in the UK complain that Germany is somehow taking more from Greece.
And here, it’s all a distraction from our US debt situation, which is terminal. The distraction is part of an effort to prop the dollar unnaturally high in the globalist economy, while trade imbalances against us are also high.
Deflate, and shut ‘er all down now? Or inflate, buying more time and making the future shutdown more severe?
Most influential political folks depend mostly on debt for their incomes to support their licensed, pedigreed and approved sitting positions, each crying for funding to be cut from some other group in the population. It’s quite a strange show.
No worry. Uncle Jintao send more gifts to daughters of government-connected, progressive American elite. He even send more debt to buy gifts. Republicrat call one-way exchange, “conservative” and “capitalism,” like great progressive-conservatives Bill Gates and Warren Buffet. Halla! How! Make okay!