Germany to Leave the Euro This Weekend? Currencies /
Euro May 13, 2010 - 04:39 AM By: Mac_Slavo
The internet, and especially gold forums, are getting excited over the
possibility of very big news from Germany this Friday.
As reported by a Zero Hedge contributor, a forum post at
GoldLikeProductions from a user identifying himself as a Deutsche Bank
employee, suggests that the big news to be announced this Friday as
stated by German politician Gregor Gysi at a recent press conference
may be that Germany will announce a return to the Deutsche Mark,
eliminating the Euro as their country’s currency:
From a forum post by an Anonymous user:
I’m working at the Deutsche Bank in Germany.
Today we delivered 1 container with new Deutsche Mark notes and new coins.
I will present a photo from the new banknotes tomorrow morning.
The curencychange will be the night from Saturday to Sunday 5/16/2010.
On Friday, 19.00 GMT Angela Merkel the germany chancelor, will speach
to the german nation.
This forum post, coupled with a page identified at Kitco.com
(screenshot), one of the leading precious metals dealers in the world,
that looks like it is being built to price gold/silver/platinum in
Marks, has gold bugs around the world buzzing.
If Germany were to announce that they are pulling out of the Euro and
switching back to Marks, there would be serious implications around the
world.
The European crisis would likely accelerate and last Thursday’s
stock market crash would just be an appetizer for what we can expect
around the globe come Monday morning. Gold would likely make a serious
move to the upside as a result.
Dispelling the RumorWe warn our readers that this may very well be
nothing more than a rumor, and recent gold price action in the upward
direction may be partly attributed to the aforementioned forum post and
Kitco page.
Regarding the Kitco.com web page, the SHTF Plan research team utilized
Archive.org, an internet archival web site that tracks web site pages
over the course of the last 15 or so years.
The very same page which is being listed at Kitco with the following
URL: http://www.kitco.com/market/dm_charts.html is NOT A NEWLY CREATED
PAGE and has existed at Kitco.com for quite some time.
The page has existed at the exact URL address since before the Euro was
accepted by Germany.
According to Archive.org, the Web Archive’s earliest listing for this
specific URL dates back to August 12, 2000 and the oldest available
instance of this page can be viewed here: http://web.archive.org/..
Thus, this is not a new development and the page was simply never taken
down by Kitco.com after the Deutsche Mark was removed from circulation.
The fact that the only available news about the new Deutche Mark comes
from an anonymous poster at an internet forum should further dispel
this rumor.
How likely is it that Germany would drop the Euro?While we do believe
in the eventual destruction of the Euro and breakup of the European
Union, Germany announcing that it will be dropping out of the monetary
union and introducing a new currency over the weekend is unlikely.
However, for inquiring minds, we direct readers to a Financial Sense
University article from April 2010 titled German Windfall Profits From
Exiting The Euro:
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.
It is not completely out of the question that Germany will decide to
leave the European Monetary Union but remain an EU member.
Obviously,
if the German people (The #2 exporters in the world) are going to be
strapped with bailing out Greece, the rest of the PIIGS and Eastern
Europe, they may be much better off just cutting their losses and
getting out now.
Friday will be an interesting day, but we’re not holding our breath. At
this point, the world economic and financial systems are such a mess
that even if Germany announces a switch back to the Mark, the end
result globally will be similar to what will happen at some point in
the near future anyway - panic, collapse and all the goodies that go
along with that.
Posts
