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Goodbye Euro, Hello Drachma: German Finance Minister Prepares for Possible Greek Bankruptcy

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posted on Sep, 11 2011 @ 05:27 PM
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A few months ago, when Zero Hedge first broke the news that the Drachma is trading at several major banks on a "when issued" basis at the client's request, the news was promptly dismissed. Alas, it may be time to dismiss the dismissal, after Spiegel reports that as one of the scenarios considered for a Greek default, Germany anticipates the reintroduction of the drachma by the pathological liars at the Greek parliament. Yes: the currency that Greece was so happy to jettison 10 years ago when after the assistance of Goldman to hide its bloated debt, to much pomp and circumstance it entered the soon to be defunct Eurozone, is coming baaaaack.


German Finance Minister Prepares for Possible Greek Bankruptcy


With doubts growing about Greece's ability to implement important savings measures and reforms, there are concerns that insolvency may be inevitable. In Germany, officials in Wolfgang Schäuble's Finance Ministry are exploring what Athens' financial collapse would mean for the euro zone.

German Finance Minister Wolfgang Schäuble, who is reportedly doubtful that the country can be saved from bankruptcy, is preparing for the possibility of Greek insolvency. Officials in his ministry are currently reviewing scenarios for handling such a situation, exploring what it might mean for the rest of the euro zone. Under the first scenario for a Greek bankruptcy, the country would remain in the euro zone. Under the other, Athens would abandon the common currency and reintroduce the drachma.

Bankruptcy Could Create Credit Crunch

One of these key instruments would be credit lines provided to countries like Spain or Italy if investors stop lending them money after a Greek bankruptcy. If banks were forced to write off the billions in Greek government bonds on their books, they could become reliant on billions in rescue fund aid in numerous euro-zone countries. Both developments are to be expected in a Greek insolvency, regardless of whether the country exits the euro or not.


The endgame for Greece is up, and perhaps the Eurozone as a whole, at least in its current form. Preparations are underway to deal with a Greek default and "financial collapse" of the country. I don't think anyone has a full understanding of what the fallout could mean and what impacts could speard on banks and economies around the world.




posted on Sep, 11 2011 @ 05:33 PM
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everyone will go to the dollar, that is the next phase



posted on Sep, 11 2011 @ 05:35 PM
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Then the wolves will pounce.. Greece has alot of assets.. they will get their money back one way or another..



posted on Sep, 11 2011 @ 05:38 PM
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reply to post by surrealist
 


This is the only end to an economic system that forces specialization over large geographic areas.

They totally destroyed their regional commerce with all their absurd trade protections.



posted on Sep, 11 2011 @ 06:09 PM
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At the current pace we will have the end within two months.



posted on Sep, 11 2011 @ 06:26 PM
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reply to post by surrealist
 

I really welcome this

Far too few people today are asking what and who caused this crisis because we are still doing too good.
The Greek people are in the streets right now saying "We didnt cause this - we wont pay for it either".
It has to get worse before it gets better I guess... so this is just another wake-up call for the people.
When Nations are in danger and every last person goes out on the streets, maybe some politicians will remember who they really work for.



posted on Sep, 11 2011 @ 06:28 PM
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Greece is just a puppet in the Euro empire. Germany and France want to rule europe as one and will ensure everybody survives to do so. So much in fact they would be in so much debt that they have to do all ?Germany and France say. I just hope the UK #s them off sooner rather than later.



posted on Sep, 11 2011 @ 06:46 PM
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reply to post by surrealist
 


The death line is Sept. 14 if by then Greece doesn't take the 11 billion "bandaid" bandaid been offered with the demands, they will default, I mean what 11 billion can do when their debt is over 600 billions, I guess that will be enough for them to make their monthly payments on the first bailout.

Still interesting that anonymous sources in Germany were already bringing plan B in case Greece default after Greece came public on Friday telling the "world" that they were not defaulting.

So stay tuned people we still got until the 14 to see what happen.




posted on Sep, 11 2011 @ 07:30 PM
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Their debt is totally imaginary. What did they do with 600 billion dollars? They never got that kind of money. It is pure fiction. The whole banking/economy system is totally criminal.

The only reason this is happening is banking.
They issue loans knowing it will be impossible to return them. They make sure one stays indebted forever. It's just that someone wants to tie people, because it's "control".

This can easily be explained but no one will accept truth and will stick to the doom scenario.


edit on 11-9-2011 by DangerDeath because: (no reason given)



posted on Sep, 12 2011 @ 12:45 AM
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Originally posted by michael1983l
Greece is just a puppet in the Euro empire. Germany and France want to rule europe as one and will ensure everybody survives to do so. So much in fact they would be in so much debt that they have to do all ?Germany and France say. I just hope the UK #s them off sooner rather than later.


Major banks in France will be downgraded today if the news on Bloomberg was correct.

The system will crash this year. It is just a question of days, weeks IMO.

It will be a rough ride for all of us.
edit on 12-9-2011 by ALF88 because: (no reason given)



posted on Sep, 12 2011 @ 12:59 AM
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Originally posted by thegoods724
everyone will go to the dollar, that is the next phase


LOL! No, each country would go back to their own currency they had before the euro.



posted on Sep, 12 2011 @ 02:00 AM
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reply to post by thegoods724
 


Originally posted by thegoods724
everyone will go to the dollar, that is the next phase


The US Dollar
why would any european Country want a currency which is only stable because its tied to Oil?
The very second Oil is no longer priced in USD the USA will lose their already fragile economic position for good because the Dollar wont be worth a Euro Cent

edit on 12-9-2011 by ColCurious because: typo



posted on Sep, 12 2011 @ 04:27 AM
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Originally posted by ColCurious
reply to post by thegoods724
 


Originally posted by thegoods724
everyone will go to the dollar, that is the next phase


The US Dollar
why would any european Country want a currency which is only stable because its tied to Oil?
The very second Oil is no longer priced in USD the USA will lose their already fragile economic position for good because the Dollar wont be worth a Euro Cent

edit on 12-9-2011 by ColCurious because: typo


They will, just to watch the dollar go down as well.



posted on Sep, 12 2011 @ 05:41 AM
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Originally posted by ALF88

Originally posted by ColCurious
reply to post by thegoods724
 


Originally posted by thegoods724
everyone will go to the dollar, that is the next phase


The US Dollar
why would any european Country want a currency which is only stable because its tied to Oil?
The very second Oil is no longer priced in USD the USA will lose their already fragile economic position for good because the Dollar wont be worth a Euro Cent

edit on 12-9-2011 by ColCurious because: typo


They will, just to watch the dollar go down as well.


That is ridiculous. If the euro goes down so is the dollar, and that, they can watch whether it becoems theirs or not. (though it is more in their interest to go to their own currency and watch that instead).
But what a strange assertion on motivation.......



posted on Sep, 12 2011 @ 07:26 AM
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Originally posted by Bluesma
That is ridiculous. If the euro goes down so is the dollar, and that, they can watch whether it becoems theirs or not. (though it is more in their interest to go to their own currency and watch that instead).
But what a strange assertion on motivation.......


It is not ridiculous, it is what happened last week. If the Euro goes down they will flee into the dollar only to see it go down as well and run into another currency.



posted on Sep, 12 2011 @ 07:54 AM
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Originally posted by ALF88

Originally posted by Bluesma
That is ridiculous. If the euro goes down so is the dollar, and that, they can watch whether it becoems theirs or not. (though it is more in their interest to go to their own currency and watch that instead).
But what a strange assertion on motivation.......


It is not ridiculous, it is what happened last week. If the Euro goes down they will flee into the dollar only to see it go down as well and run into another currency.


It happened last week?????? Geez, I just did my shopping in euros today and nobody batted an eye! How weird is that?
They didn't even bother to mention it on the news that we'd just changed currency to the dollar!

Now, really.... besides that false assertion, there is the one about WHY they would do that- just to see it go down? Out of what? Simple hatred? Desire to fall harder, some more? ...Oh wait, let me guess "Because they are jealous and hate us for our freedom." N'importe quoi !



posted on Sep, 12 2011 @ 08:23 AM
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If Greece goes down so many of the other smaller economies link to the EU, yes the bigger nations will just have to bailout themselves like they did after 2008, but the big banks will never go down "completely".

As for the dollar, yes it will take a hit but the hit is not going to be necessarily link to the Euro,the US dollar has been able to keep its independance all this years, but the link to how much US was up to their neck on the Greece mess is going ot matter, everybody remember the "derivatives", well is going to be a lot of financial institutions in trouble again with peoples "retirement accounts".

As usual more debt to the citizens in order to keep the nations wealthy elite in charge of the financial industries afloat.
edit on 12-9-2011 by marg6043 because: (no reason given)



posted on Sep, 12 2011 @ 08:50 AM
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Originally posted by Bluesma

It happened last week?????? Geez, I just did my shopping in euros today and nobody batted an eye! How weird is that?
They didn't even bother to mention it on the news that we'd just changed currency to the dollar!

Now, really.... besides that false assertion, there is the one about WHY they would do that- just to see it go down? Out of what? Simple hatred? Desire to fall harder, some more? ...Oh wait, let me guess "Because they are jealous and hate us for our freedom." N'importe quoi !


A little less aggression from your side would be nice, as I didnt attack you in any way. Last week investors fled from the Euro into the USD. This is a fact. I am working at the FSE so please dont try to outsmart people you know nothing about.

Apart from that you totally misunderstood what I said.
edit on 12-9-2011 by ALF88 because: (no reason given)



posted on Sep, 12 2011 @ 11:54 AM
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Originally posted by DangerDeath
Their debt is totally imaginary. What did they do with 600 billion dollars? They never got that kind of money. It is pure fiction. The whole banking/economy system is totally criminal.

The only reason this is happening is banking.
They issue loans knowing it will be impossible to return them. They make sure one stays indebted forever. It's just that someone wants to tie people, because it's "control".

This can easily be explained but no one will accept truth and will stick to the doom scenario.


edit on 11-9-2011 by DangerDeath because: (no reason given)


These numbers arnt fake. this is what happens when you live in a welfare state. You promise to much and run up the debt. This problem will come to the UK and USA shortly after.

Did you know the USA ran up $400+ Billion for the month of August! You wont find that in your sunday paper. At that rate you will have to raise the debt limit again in 3 months!!!! Thats change you can belive in



posted on Sep, 12 2011 @ 12:21 PM
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reply to post by camaro68ss
 


Exactly and run "yearly stimulus" just to keep the country living the illusion of government intervention.

I also believe that the crash in the EU is coming, but remember that the too big to fail in the EU will get their money to pay their loses from the citizens., they will be forced to bail them out.

I see the trouble amounting once Greece default, gets out of the EU, Spain, Portugal and all the smallest economies of the EU will follow sue.




edit on 12-9-2011 by marg6043 because: (no reason given)



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