Germany leaving the Euro?

hmmm I wonder if the Vatican is going to step in secretly showering money to create an economic revival that astounds everyone. Just like last time... I suspect the end will be worse then last time :(
 
How can a country leave the Euro and introduce a new currency?
Which Euros would be converted to the new currency and which ones wouldn't.
It doesn't seem like a practical solution to me.

If the new currency is the Drachme, no one would want to convert their Euros and if the new currency is the D-Mark, then everyone would want to convert.
Are they only converting German Euros? Are they only converting German bank accounts? Can every German convert up to, say, 100k Euros?

Or are they just leaving everything as it is and just pay all new salaries in Germany in D-Mark and all Euros can be converted into D-Mark at the current exchange rate?
If that's the case, they have to introduce the D-Mark with an extremely high exchange rate as otherwise everyone would convert their Euros.
 
stackeract said:
How can a country leave the Euro and introduce a new currency?
Which Euros would be converted to the new currency and which ones wouldn't.
It doesn't seem like a practical solution to me.

If the new currency is the Drachme, no one would want to convert their Euros and if the new currency is the D-Mark, then everyone would want to convert.
Are they only converting German Euros? Are they only converting German bank accounts? Can every German convert up to, say, 100k Euros?

Or are they just leaving everything as it is and just pay all new salaries in Germany in D-Mark and all Euros can be converted into D-Mark at the current exchange rate?
If that's the case, they have to introduce the D-Mark with an extremely high exchange rate as otherwise everyone would convert their Euros.
Click to expand...

they will find a way
 
Good on them the euro is a dying currency the only bad thing about this as it will strengthen the USD, which will probably bring metal prices down temporarily but if you're looking to buy rather than sell I'd take it as a blessing.
 
Don't panic! - yet! Only a rumour at this stage - but if it did happen ..........SHTF for the Euro, good for USD, no good for gold/silver short term! :(
But eventually US will also go down - then theoretically gold and silver go up! - What a mess!
I kinda believe this rumour though!
Who knows where it will all end up?
 
My pleasure mate, we are all students at the moment as I believe none of us have seen these times before, shall keep links that are relevant.
 
I think it's a very real possibility that it happens but not as quickly as suggested, just an educated rumor I think.
 
http://www.pippamalmgren.com/77.html

2 Options:
1. She's a bankster stooge
2. She's connected and correct.
She served as financial market advisor in the White House and on the National Economic Council from 2001-2002, where she was responsible for financial market issues. She founded Malmgren and Company, in London, England in 2000 and was previously the Deputy Head of Global Strategy at UBS and the Chief Currency Strategist for Bankers Trust. She headed the Global Investment Management business for Bankers Trust in Asia. She has a B.A. from Mount Vernon College and an M.Sc. and Ph.D. from the London School of Economics. She completed the Harvard Program on National Security. The World Economic Forum named Dr. Malmgren a Global Leader for Tomorrow in 2000. She is also a member of the Council on Foreign Relations, Chatham House, the Economic Club of New York and the Institute for International Strategic Security.
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Euro:
News to expect in the coming days and weeks:

Greece defaults
Germany protects German banks but other countries cannot do the same thus quickly provoking multiple sovereign defaults and or bank failures, all of which may easily lead to a payments crisis in the global banking system. Derivatives are particularly at risk in terms of operation and execution.
The Euro falls in value especially against the US dollar
The Germans announce they are re-introducing the Deutschmark. They have already ordered the new currency and asked that the printers hurry up.
The Euro falls even more on any news that Germany is withdrawing from the Euro.
Legal wrangling begins as to the legality of Germany's decision. Resolution takes years.
Germany insists that the Euro continues to exist even they do not use it any longer. They emphasize that European unification will continue and suggest new legal instruments to strengthen European Unification including new EU Treaties.
The markets are focused on the imminent default by Greece. But, this is not the most important issue now.
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Australia:
I disagree with Jim Rogers' view. He says, "the euro will go down a fair amount. But I would buy all the Euro I could at that point because then that would mean that Europe is going to have a very strong, sound currency". "People can not lie about their finances anyone, people have to run a tight ship."[xv] This might make sense if Greece is the only defaulting country, but it won't be. It would make sense if Germany stayed in the Euro. But, I believe the risk is that Germany will not stay in.

Europe is about to become a very cheap place to go on holiday or to buy a beach house or a ski chalet or a vineyard.

Countries that already have inflation can expect much more once these events unfold. This is going to make the policy problem for Australia and Canada substantially more difficult. The cost of living will rise but no central bank can raise rates against the backdrop of a crisis environment.

The world is about to experience deeper stagflation. The cost of living will now rise even more but growth remains stunted. Policymakers will start to veer back and forth between dealing with unemployment and dealing with inflation. The years ahead will be referred to as "stop go" years because policy will at times try to stop price hikes and at other times policy will try to push growth. Luckily, the world has seen this movie before in the 1970's. Hopefully, we have learned something from the past and it ends rather more quickly this time around.
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and consider:
If any doubts remain about the German inclination to return to the DMark then consider these announcements. Switzerland announces a peg to the Euro. It was crystal clear at Jackson that the Swiss leadership expected an historic event to occur which would culminate in a rush into Swiss Francs. They tested the water by announcing a "fee" which would be applied to all non-Swiss purchasers of their currency. Within a few days they announce the peg. In short, Switzerland knows what is coming and has just barred the door to anyone who might try to escape the demise of the Euro by leaping into Swiss Francs.
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and how do the banks benefit:
It therefore seems likely the US Dollar and US Treasuries will be a major net beneficiary of any failure to bailout Europe. As an aside, this means the market would undertake QE3 as it were. The Fed won't have to do "operation twist" or consider QE3. They will be able to focus their attention on the inflation "target" and finding ways to justify letting it rise.
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AND
Gold, diamonds, agricultural assets, energy prices and mined asset prices will rise. Default reduces the debt burden and allows growth and inflation to return. If central banks (other than the ECB) throw huge liquidity out into the market because of this event then the liquidity is going to lean away from paper financial assets other than the most trusted and liquid (US Treasuries), and lean toward hard assets.
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Just out of interest I read today that the 300year old+ LLoydes of London have withdrawn all their money invested in all countries and all banks in Europe. Now thats confidence in the Euro!!!!! What do they know that we are not sure of?
 
When players of this magnitude make moves like this, it's time foreverybody to start playing very close attention ! - if you haven't been already.
 
Look at that what Deutsche Bank saying on MSM!

EUROZONE: Deutsche Bank analysts the German government "could provide ...
6. October 2011 3:50:21

EUROZONE: Deutsche Bank analysts the German government "could provide
insurance against the risks and side-effects of an ECB policy of easy
money and monetary government financing" which would act to "reassure"
German concerns about inflation and ease ECB member tensions. They say
one way would be the creation of a new type of index-linked German
government security tied to the German price index. The securitiy would
provide protection against inflation in Germany "and against a capital
loss should a new harder currency be introduced." In turn, with the
backing of these securities, German banks and insurance could create
investment instruments that offer the same kind of protection, the
analysts say.
 
I think that just about confirms their plans then! This is very, very interesting... Get ready for this rollercoaster.
 
They say
one way would be the creation of a new type of index-linked German
government security tied to the German price index. The securitiy would
provide protection against inflation in Germany "and against a capital
loss should a new harder currency be introduced."
Click to expand...

What would be the security? I still dont understand.
 
I am not sure on the details, but the Euro is tied to the entire European economy and financial health.
The supposed new index by Deutsche Bank is only tied to Germany performance as the any new German currency would do the same.
 
This will not happen so don't panic.

Greece is bust and will never repay back its loans.
It is totally screwed and on strike.

Greece represents about 2% of Euroland so no big deal if they are thrown out of the Euro.
It is what they deserve for entering it under false accounting in the first place.

The banks taking a hit will be bailed out or recover in months rather than years so no tears here.

Germany is loving the low value of the Euro because it is making their exports cheaper.

The worry is the button pushing big players who trade countries rather than commodities deciding Spain and Italy are likely to default.
These guys are making billions on speculative trading and love the volatility cashing in heads you win, tails you loose.
 
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