[RUMOR] Germany to give up euro friday

As I say it's only a rumor (I don't believe it will happen, personnaly, but it's interesting).

From this link (zerohedge) :
www.zerohedge.com...

No quotes because I have a pizza on the fire :

A web page of precious metals prices provider Kitco.com has sparked rumors that Germany will leave the Eurozone and reintroduce German Marks, sending gold to a new record of $1,244 and silver to a multi-year high of $19.64.
It is this half-ready page shown below that has created excitement as it lists precious metals in Deutschmark units.
German website Silber.de had another market-sparkling comment from a forum participant who said goldprice.org has reintroduced a DEM option since about a week. Check it out here.

And there is still more material feeding the rumour. German leftist politician Gregor Gysi announced on TV that there may be an important announcement to be made on Friday. The video below is in German.

In a literal translation Gysi did not say that Germany will reintroduce the Mark but made a curiosity-inspiring statement, saying that there may be some very important news that will be announced on Friday.
The hottest trail can be found at website godlikeproductions.com. A poster claiming to be an employee of Deutsche Bank wrote that the bank received a container full with new German Marks banknotes and coins. He wrote he will publish a picture of the new Marks on Thursday morning. He also said the currency change would happen this weekend with German chancellor Angela Merkel scheduled to give a speech to the nation on Friday evening.
As we see the rapid destruction of the next fiat currency - all of them have failed in the past 3 centuries - rocketing precious metals prices prove once more there is no other safe haven when the going gets really tough.

[edit on 12-5-2010 by ickylevel]

If this happens on Friday.. I will eat absolutely every hat in a hundred mile radius..

***Breaking News***

Germans decide to back and lend hundreds of billions of EURO's only to crash the currency in question, lose it all and start afresh while destroying their advantage in the world markets.. ie Being the main economy in the EURO and single market..

Rubbish..

[edit on 12/5/10 by Dermo]

If they hadn't just put in Billions for the greek bailout, this might hold some water.

As it currently stands, this has more holes than the delicious swiss cheese I'm eating. Use some common sense people?

Guys , remember that they only announced the bailout. Nothing prevent them from cancelling it. Also, since they noticed the announcement failed to re-establish confidence, this could hold water.

But I personnaly don't believe it. it stills interesting though.

[edit on 12-5-2010 by ickylevel]

Some content :


link to www.financialsense.com

Germany is a nation that fears inflation for good historical reason, and among the nations of the world, Germany places a particularly high priority on price stability. Yet, so long as Germany remains in the European Economic and Monetary Union (EMU) with the euro as its currency, Germany may not be in control of German inflation. In particular, the current crisis with Greece, and the crises that may follow with other nations such as Portugal, Italy, Spain and Ireland may prove disastrous for German investors and taxpayers. For so long as it is in the EMU, Germany may have no effective choice but to bail out countries that have been running up huge deficits – despite Germany itself not having the economic capacity to do this for all of Europe on an indefinite basis, let alone the political will to do so. These are among the reasons why in a letter to clients late last week, Morgan Stanley warned that Germany may leave the euro and the EMU and that investors should be prepared for this event.


If this event happens, it may create an enormous financial windfall for millions of individual Germans, as well as German companies, not to mention the German government. While leaving the monetary union is still far from certain as Germany also has strong economic and political incentives to stay in the EMU, in this article we will say “what if” and explore some of the startling benefits for nations and individuals of quickly exiting a failing monetary union – as well as the many perils. But while the specifics of this article are about Germany (and France), the implications go far beyond Germans and Germany (although there are very important implications for arbitrage opportunities with German companies). Rather, in this world of financial crisis and sovereign debt crisis, there are powerful related wealth and financial security implications for individuals in every country.

[..........]

The rest at : www.financialsense.com...

it makes sense for Germany.

They can print their own money again
just like the US Dollar.

And they can print all they want.

I t would def kill the Euro
and crash that system, if multiple
countries did this.

This could be a way to reduce their debt :

First let's consider the current German government situation. Total outstanding government debt in Germany is equal to about 1.7 trillion euros, and as of 2009, equaled about 77% of the German GDP (according to the CIA World Factbook). Now let's assume that Germany does exit the economic and monetary union, and when it does so, it creates new Deutsche marks that are exchangeable one for one at the valuation for euros as of that exit date. After the exit of Germany, let's make the reasonable assumption that Germany's economy remains strong, at least relative to much of the rest of Europe. Let's also assume that with Germany exiting, and perhaps France exiting behind it, that the European monetary union is left with the weaker members where the world in general and investors in particular are quite unsure about the ability of these nations to repay their debts. So the euro plunges.

For our scenario, we’ll assume an immediate sharp drop of the euro in the neighborhood of 30-40% when Germany exits the EMU, relative to the new Deutsche mark. This value differential is assumed to rapidly increase as an inflation differential builds, and more strong nations leave the euro. After the passage of a period of time – and it could be months or could be years – we'll assume the currency exchange rate is now 10 euros for every Deutsche mark. In other words, we'll assume that the euro loses 90% of its value relative to the Deutsche mark. (This assumption is not a precise projection, there are cases for higher and lower projections, but it does have the virtues of being a round number and reasonable.)

With this scenario, Germany's euro-denominated national debt is now worth 10% of what it was when we look at things in Deutsche mark terms rather than the euro, and keep in mind that the German government income from taxes is in Deutsche marks, rather than euros. Germany is now repaying debt at 10 cents on the dollar (so to speak) and the value of its outstanding debt has fallen from 1.7 trillion euros down to 170 million Deutsche marks – a 90% reduction in net debt. Thus, German national debt (ignoring any new debt issuance) as a percentage of the German economy has dropped from 77% of German GDP down to 7.7% of German GDP.

Originally posted by boondock-saint
it makes sense for Germany.

They can print their own money again
just like the US Dollar.

And they can print all they want.

I t would def kill the Euro
and crash that system, if multiple
countries did this.

This is even better, they won't have to print money because their debt in euro will be automatically devaluated if they leave the EMU.

i thought i read, some hours ago now, that the Germans would be showing new Euro monies

i took it as there being a definite division in the Northern EU currency and the Southern EU currencies.

the source (which excapes me at this time) was neither of the sources that are cited in this thread ~zerohedge~ or ~financial...~

if it become critical i will go back & review todays history of sites visited,
but, the bottom line, is that i understood that new, distinct, Euros are being printed and to be released into circulation on the 15th? or something like that...
i didn't pay a real analytical eye on the news because it did not say a return to the DeutschMark, but new distinct Euro notes

[edit on 12-5-2010 by St Udio]

reply to post by ickylevel


Also, factor in the new UK (Likely to remain dislocated in Sterling NOT Euro and do everything they can to distance themselves from the Euro) government AND stories about the UKs renewed distancing from the new Euro insurance scheme pact AND wasn't it French NOT German criticism that we have been hearing about that UK positioning...AND all that disquiet in the German media about Greece/PIGS, I don't know, I wouldn't rule this out?

Don't like what it may mean for Europe though. Had such a thing (Euro disassembly/redirectioning) all happened a few years ago, perhaps immediately pre/post Maastricht?) it may have not been so bad. But with the current gobal political and resource issues, in concert with the massively unresolved global financial meltdown, this has all the wrong types of potential flashing up on the dashboard IMO. I don't think Winston Churchill would like it either if he were here. I just hope we can maintain peace across Europe, there are a lot more countries involved now than there were when Churchill was simply trying to hold together the Western European nations post WWII, and I wonder about how that may affect the Ex-Soviet Block/Russian/French arena?

Ho hum, and anyone for a renewal of German nationalism, perfect timing...

If you have read the link I provided, you would inderstand how france and germany leaving the euro would be a masterpiece. They have a chance to "erase" their debt. Maybe that's the reason why sarkozy made a lot of borrowings : He knows he won't have to fully pay them back.

[edit on 12-5-2010 by ickylevel]

reply to post by boondock-saint


Might it be a question of which (currently Euro) countries are and which aren't given that credit facility, and who may step in to fill the EDIT:[financial support] void for the less fortunate countries, and then perhaps a cue for aspirational Russian/Chinese strategic infiltration (a-la Argentina?...)

Yes, perhaps Germany is seeing the UK direction, perhaps re-clarified via the new government selection, as a more attractive escape route from otherwise attempting to prop up the entire Euro zone - or get trashed with it...?

[edit on 12-5-2010 by curioustype]

I don't think people here realize the intricacies of removing a member state from the EUROZONE..

It would have to be a common consensus, voted upon by the EU parliament and the parliaments of all member states.. Like any major Pan EU decision..

If Germany decided to pull out.. They would have to instantly leave the EU.. Which in itself is illegal.. therefore crashing the entire thing.. Writing off the European continent and following quickly the world.. Then having no common market in which to continue exporting the majority of their products in order to keep themselves so wealthy.. Therefore bankrupting themselves..

If this was to happen.. it would take years.. Its not possible to be done by Friday..

The EURO is the pinnacle of the achievements of the Germans and French in Europe..

Someone talking sense who has a logical understanding of the EU and EUROZONE please tell me how and why this would happen..

As I said above.. this is complete rubbish.. Don't bother buying into it..

Its almost like California and New York deciding to remove themselves from the Dollar and start their own currency.. If it was to happen, it would take years and would be messy messy messy.. Not some rumor on some Forum..

That would be awesome if they leave, wouldn't it ?

Can't wait for friday !








Because its the weekend.

Originally posted by ickylevel
Because its the weekend.

Thank Crunchie its friday!

Or else if they do leave, ill be eating a substantial amount of hats..

Anyway.. Im not an objector to the EUROZONE or the majority of what the EU do so I hope it doesn't go belly up..

Because last time things went belly up in this continent.. 120 million people died over the space of 25 years..

Not a big fan of that scenario reoccurring TBH..

It's simple to know if this is going to happen or not - if the Rothschilds, Rockerfellers, and other major money families have been investing in German property, banks, companies, gold, silver, etc...

Then it's going to happen - they may see a 900%+ return in a very short period of time.

I live in Germany. The current government here is going "all in" to defend the euro. They will promise, print, cajole, tax and lie to defend the currency, regardless about how many hundreds of billions of euros in debt and obligations it heaps onto the German people or what the German public think.

The German people, in their majority, never wanted the euro to begin with, nor did they want to bail out Greece or any other EU member. The politicians however, always do the opposite of what the majority wants. If Chancellor Merkel and her cabinet run the economy straight into the ground, and in my opinion, they are well on the way in doing just that, it will be the hardcore leftist socialists who will be gaining more and more power and then their time to experiment will happen.

If that doesn´t work, democracy in Germany as we know it today may again be in danger. In such a case, you would sooner see the reemergence of the Reichsmark, than the Deutschmark.

[edit on 12-5-2010 by fockewulf190]